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Thursday, October 1, 2009

[ALOCHONA] Neighbours differ with Dhaka over sea blocks



Neighbours differ with Dhaka over sea blocks
 
Dhaka, Oct 1 (bdnews24.com)—Disagreement has surfaced with India and Myanmar over maritime boundary of the three blocks earmarked for oil and gas exploration in the deep Bay, the foreign secretary conceded on Thursday.

"India has claimed that two blocks, 5 and 10, have overlapped their maritime boundary while Myanmar made the same claim about block 11," Mohamed Mijarul Quayes told reporters on Thursday afternoon.

"We have also replied to their claims," he said

But he did not think it to be a 'dispute' between the two countries. "Bangladesh ratified maritime boundary law in 2001."

"But we need to negotiate with India as we have 'equity distance' over maritime boundary with the neighbouring country," he said.

Bangladesh would seek equitable right in the sea in future through negotiations, the foreign secretary added

Recently, the government endorsed a proposal on leasing out blocks 5, 10 and 11 to ConocoPhilips and Tullow Oil plc for offshore oil and gas exploration.

ConocoPhillips, the third largest energy company in the US, will get deep-sea blocks 10 and 11. Shallow-sea block 5 will be awarded to Irish company Tullow that already operates in Bangladesh's Bhangura gas field.

"India and Myanmar have traced oil and gas in the sea but they raised 'objection' when we moved to seal exploration deals with foreign companies in the three blocks," Kayes said.

The problem would be addressed within a few years though the two countries made claim on maritime overlapping, he hoped.

Answering to a query, additional secretary to foreign ministry Khorshed Alam said 1982 maritime boundary law was replaced by 2001 United Nations Convention on the Law of the Sea (UNCLS).

The neighbouring countries still stick to the previous law, he said

Only 12 miles sea boundary go under previous law while 200-300 miles under UNCLS, Alam added.

State-owned exploration authority Petrobangla chairman Moktadir Ali said ConcoPhilips is expected to sign deal in the first week and Tullow in the second week of the current month.

Conoco won bids for eight deep-sea blocks in all (DS-08-10, DS-08-11, DS-08-12, DS-08-17, DS-08-15, DS-08-16, DS-08-20 and DS-08-21). It proposed to invest about $450 million for exploration of all eight blocks.

Tullow submitted the winning bid for shallow-water block SS-08-05 offering to spend $50 million.

A left-leaning National Committee on Protection of Oil, Gas and Mineral Resources, Power and Ports has been demanding cancellation of Model PSC 2008 formulated during the immediate past caretaker government.

They hold that the government has leased out the blocks on terms of 80 percent gas which will facilitate to lease out 100 percent gas.

Prime minister's adviser for energy affairs Dr Toufiq-e-Elahi Chowdhury said, "Everyone will have to play a courageous role in uprooting prevailing problems of the country."

"The country cannot make stride only through debate," he said

"The government will work with a mission to go ahead despite different opinions in the country," he said

On 'secret deal' with the multinational companies, he said details of the deals were posted on the website and nothing could be more transparent.

Bangladesh, with about 15 trillion cubic feet (425 billion cubic metres) of proven and recoverable gas reserves, is currently facing around 100 million cubic feet of gas shortages a day.

State minister for energy Enamul Haque, energy secretary Md Mohsin and power secretary Abul Kalam Azad took questions at the news conference.




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