Myanmar gives AL another excuse to ignore US oil companies
Wednesday January 05 2011
By MBI Munshi
It seems there is an organized and concerted effort to prevent US oil and gas companies from investing in Bangladesh with Prof. Anu Muhammad and the National Committee to Protect Oil, Gas, Mineral Resources, Power and Ports leading this selective campaign. Does this predicate the waning of US influence on this country and the filling up of the resulting vacuum by India and Russia? Myanmar's objection to Petrobangla's planned signing of a production-sharing deal with US oil giant ConocoPhillips is merely an adjunct to this negative campaign against US companies in Bangladesh. The thinking inside Myanmar is probably along the line that since Bangladesh apparently does not want American companies to explore for gas in the Bay of Bengal there is no harm if we object to any agreement between Petrobangla and ConocoPhillips.
If Myanmar were then to (forcibly) explore in the disputed blocks there is very little that our navy could do about it and it is unlikely we could ask for help from the United States, who we had just spurned. Dhaka may then look to New Delhi for assistance against Myanmar but that would also probably be a pointless effort since Bangladesh has disputes on ten exploration blocks claimed by India. In the end we could find ourselves with nothing to explore as all the blocks will have been taken over by the Indians or by Myanmar.
Only a very naïve person would think that India actually has our best interests in mind while they gradually gobble up anything and everything of value on this side of the border. Although Bangladesh is now the third largest exporter of RMG to the United States many of the companies now operating in this country are actually owned by Indians. The BGMEA president has recently suggested providing further incentives and inducements for Indians to be involved in our RMG industry and new agreements may be signed in this regard during Prime Minister Manmohan Singh's visit to Bangladesh in February. The sudden outbreak of violence in the CEPZ targeting Korean and Japanese companies may be an attempt by external forces to push out (other) foreign competitors from Bangladesh.
The Indians have already taken a large stake in the telecommunications sector (at knock down prices) and it is even rumored that RAW has a local office operating from inside the DGFI HQ in Mirpur Cantonment. In the meantime steady progress is being made to provide free transit facilities to India and several agreements have been signed in the last two months to this end. All that needs to be done is for our country to be renamed Bangladesh Inc. (a wholly owned subsidiary of the Congress Party of New Delhi) with Sheikh Hasina as its CEO and Sonia Gandhi the Chairperson and Manmohan Singh the DMD of this new commercial enterprise. Security for its local offices in Dhaka will be provided by the Bangladesh Army (which would now have become a private security firm with its main expertise in peace keeping operations!), the police and the BGB with the Commanding Officers of these organizations being gifted a horse on their retirement.
MBI Munshi
E mail : mbimunshi@gmail.com
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Related News article below:
Myanmar objects to deal with ConocoPhillips
Myanmar has objected to Petrobangla's planned signing of a production-sharing deal with US oil giant ConocoPhillips, according to sources.
Myanmar in a recent letter to the foreign ministry requested Bangladesh government to refrain from signing production sharing contract (PSC) with the US firm until the maritime boundary dispute between the two countries was resolved, a senior foreign ministry official said.Myanmar claimed that both the deep-water offshore gas blocks DS-08-10 and DS-08-11, for which ConocoPhillips was selected to conduct exploration, lay within the boundary of its territorial waters.
The objection from the neighbouring country came at a time when the government completed all necessary formalities with ConocoPhillips before signing the PSC for oil and gas exploration in deep-water offshore gas blocks in the Bay of Bengal.
Petrobangla already inked an initial agreement with ConocoPhillips in October last prior to signing of the PSC on completion of its over two years' negotiation with the US firm.Under the agreement ConocoPhillips has agreed to start exploration works in two said offshore gas blocks immediately after signing of the PSC.It also agreed to avoid exploration activities in disputed areas in the blocks as claimed by neighbouring India and Myanmar.
ConocoPhillips has already been kept waiting to sign the PSC for over two years since launching of the 2008 offshore bidding round.The latest objection from Myanmar over signing of PSC might further delay the signing of PSC with the US firm, said officials.
In its bid in 2008 the ConocoPhillips pledged to invest $110.66 million in total and offered bank guarantee of the same amount for the two blocks it got approval for.The ConocoPhillips has committed to conduct 2D seismic survey covering 1200 line kilometres (LKM) during its initial five years of exploration period with an investment commitment of $ 2.496 million offering bank guarantee of the same amount.It has also committed to conduct 3D seismic survey in 500 square kilometres and drill a well during the first extension period of two years investing $58.1665 million and offering bank guarantee of the same amount.
The company has pledged to drill one well in its second extension period of two years with an investment commitment of $50 million.Officials said Myanmar also had raised objection during Bangladesh's offshore bidding round in 2008 too and had wrote letters to different international oil and gas firms asking them not to take part in the offshore bidding round.
Neighbouring India also raised objection over the bidding that time claiming part ownership over the offshore blocks as delineated by Petrobangla.Protest from the neighbouring countries resulted in lukewarm response during the country's 2008 offshore bidding when only seven foreign firms submitted bids for 15 gas blocks out of 28 offered blocks.
The government is now in talks with the neighbours to settle the maritime boundary disputes for kicking off exploration in the prospective offshore structures and shrug off the country's perennial energy crisis.It has also lodged suit with the United Nations tribunal to settle the maritime boundary disputes with neighbours.
At present Australian Santos operates Sangu gas field is the country's lone operational offshore gas field.The government has so far awarded only 12 hydrocarbon blocks -- both onshore and offshore -- since gas exploration began in Bangladesh in late 1960s. But the international companies are now active in only six blocks having given up the rest.
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