October 2, 2016

Page 1

SECOND EDITION

SUNDAY, OCTOBER 2, 2016

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Ashwin 17, 1423, Zil-Hajj 29, 1437

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Regd No DA 6238, Vol 4, No 155

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www.dhakatribune.com

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32 pages

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Price: Tk10

Govt to allow gas export by IOCs

Petrobangla will sign a contract with Posco Daewoo to explore a deep sea block

‘Gulshan attack probe almost done’

n Aminur Rahman Rasel

n Mohammad Jamil Khan

The government has amended the model PSC to include the provision of gas export by international oil companies (IOCs) as it prepares to sign an agreement with Posco Daewoo International Corporation for deep sea gas exploration. The government made the decision following the hectic lobbying by the IOCs to include the gas export provision in the model PSC – product sharing contract – even though the provision was cancelled only four years ago. When the agreement is finalised, Posco Daewoo will explore deep sea gas block no 12 in the Bay of Bengal under the Speedy Supply of Power and Energy (Special Provision) Act, 2010. Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) is

There is a huge crisis of gas in the country, yet the government is allowing the provision of gas export by the companies who would extract it. It contradicts with the government’s stand

responsible for the exploration and has prepared the agreement proposal. The proposal will be tabled at the meeting of Cabinet Commit-

tee on Economic Affairs this week for approval, said Nazimuddin Chowdhury, secretary of Energy and Mineral Resources Division (EMRD). “The proposal has been sent to the Cabinet committee. If it is approved, the government and Petrobangla will jointly sign the deal with Posco Daewoo, keeping the provision of gas export in the agreement,” he told the Dhaka Tribune. However, the EMRD secretary declined to comment when asked why the provision was allowed again when it had been cancelled four years ago.

What the PSC amendment means

According to the amended model PSC of 2012, the prices of gas produced by IOCs from deep sea gas fields will increase by 2% annual-

ly. In addition, the IOCs have been exempted from paying the transportation tariff of 4% for using Petrobangla’s transmission lines. The exploration companies will also enjoy exemption from paying the corporate tax. The amendment also includes the provision of increasing the price and share of gas for IOCs, a higher cost recovery limit, and corporate tax payment by Petrobangla. According to the amendment, an IOC will sell around 50% of the produced gas to Petrobangla at $6.50 per 1,000 cubic feet. Following that, the IOC can offer Petrobangla to buy the rest of the gas according to its own terms and conditions. But if Petrobangla refuses to buy the rest of the gas, the IOC will be allowed to sell the gas to a third party inside Bangladesh.  PAGE 2 COLUMN 1

Investigators claimed to have identified almost all the people involved with the deadly terror attack carried out on an upscale Gulshan restaurant that killed 23 people including 17 foreigners three months back, but their whereabouts still remain a mystery. Officials of the police’s Counter-Terrorism and Transnational Crime (CTTC) unit say they have made significant progress in the investigation. The field-level coordinator, financiers and arms suppliers for the July 1 attack have been identified and the law enforcers are carrying out operations to arrest them. Two of the suspects have, however, fled the country, sources confirm to the Dhaka Tribune.  PAGE 2 COLUMN 1


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