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VOLUME 7, ISSUE 16                       






COMMENT 
 


OGPC’s Road March: What For?

Engr Khondkar A Saleque

 

The “National Committee to Protect Oil, Gas & Port” (OGPC) held a road march from Dhaka to Cox’s Bazar in protest against what it said the present democratic government’s bid for leasing out some offshore exploration blocks in the Bay of Bengal for petroleum exploration. The government has overwhelming peoples’ mandate to rule the country for five years. Obviously they are mandated to take decision for exploration and exploitation of natural resources for fuelling national economy. There are government organizations responsible for carrying out assigned tasks and there are well-documented approval procedures to handle such issues. The parliament is very much active to talk issues of national interest and elected representatives can any time raise questions concerning national interest.

 

The nation is now suffering from serious energy crisis, fuel supply crisis. At this moment all patriotic citizens must support government efforts to explore national resources and create power generation facilities without creating any unnecessary barriers. Bangladesh has unexplored gas and oil in the offshore. It has substantial volume of high quality coal at shallow depths in around 100 sqkm in onshore area. But, energy security of 150 million people is at stake.

 

When the nation needs to explore natural resources for future energy security the OGPC wants ban on open pit mining for coal. They want all moves to lease some offshore blocks to selected IOCs in the Bay of Bengal.  At a time when nation needs quick access to own resources the self-destructive actions of a certain identified group of vested interest must not be taken lightly. Conspicuously this group remain silent when legal and illegal means are taken to import dump ash coal in Bangladesh from a neighbouring country or when India and Myanmar encroach our maritime boundary. They even do not bother about subsidence impact of Barapukuria mining. They do not talk about wastage of 34000 crore taka in uneconomic venture of underground coal mining at Barapukuria.

 

Some so-called left leaning political leaders and some columnists have also joined the chorus. These politicians should try to win election and speak in the elected Parliament. In the backdrop of above let us discuss the situation in some depths.

 

Bangladesh proven gas reserve is running out although there should not be any genuine concern that our entire gas resource is going to be exhausted. Bangladesh is still the least explored country. Vast onshore area and almost the entire offshore remain unexplored. So far there has been no serious attempt to explore for petroleum in the deepwater. Most of our major gas fields like Titas, Habiganj, Bakhrabad, Kaillastilla, Rashidpur, Feni, Chattak and Haripur were discovered by international oil companies. Our own OGDC (now Petrobangla) and Bapex discovered some small gas fields. Then again IOCs discovered Sangu, Bibiyana, Jalalabad, Moulavibazar and Bhangura gas fields. Our own capacity was never grown to any stage that we could invest and explore for oil & gas applying modern technology. But at the same time there is no denial that no genuine efforts were made to professionally make our own companies competent.

 

Government of Bangladesh is not in a position to make significant investment in exploration and exploitation of natural resources. So it mostly relied on lending of development partners to develop discovered resources and IOCs to explore petroleum resources. Continued negligence to BAPEX has reduced the company now to a weak and sick company not capable to accomplish assigned tasks with required urgency. It can not carry out offshore exploration. We have no option but to engage IOCs for it at this stage.

 

We should have started offshore exploration at least from 1990s. But even two democratic governments since 1991 till 2001 did not take necessary initiatives. India and Myanmar carried out extensive explorations and discovered some major resources. Bangladesh started its efforts in late 2005. The draft PSC was updated professionally. Offshore exploration is a pure gamble. So any PSC document must have required incentives to attract IOCs. Updated PSC draft is still available in the websites. PSC document is not a document on which a Tom, Dick or Harry can make comment professionally. An elected government does not require to seek people's opinion every now and then on all issues. In addition the political government has its responsibilities to implement its election pledges.

 

But, certain quarters are misleading people. It has been ensured that an IOC will be able to export 80 percent of its portion’s gas (not from the share held by Petrobangla) in LNG form only if Petrobangla refuses (which is highly unlikely) to buy it.

 

But, the OGPC is telling people that the IOCs will own 80% of the gas of offshore discovery. It is a deliberate misinterpretation of PSC provision; it is a propaganda to drum up peoples support. IOCs will offer production sharing split from 50%-80% to PB. IOCS will also offer its share of gas to PB. It is only if PB refuses to buy gas then  IOCs may export 80% of their share of gas in the form of LNG. In the present situation such situation will not arise as PB desperately needs gas.

 

It is a crime to misguide people. The road march of OGPC was not to serve people or country’s interest but to serve interest of neighbouring countries, which want to create barriers for our offshore exploration.

 

OGPC also opposes exploration of our own high quality less polluting coal in the most technically appropriate manner to extract maximum resources. They challenged Engr Mahmudur Rahman in 2005-06, they challenged Dr M Tamim in 2007-08 and now they are challenging Sheikh Hasina government. Who are they? Some paper tigers, some failed politicians, some parasites. Other than making sarcastic statements every now and then did they make any substantial contribution ever in the development of energy sector?

 

Bangladesh has five discovered coal-fields in greater Dinajpur and Rangpur districts. The mines actually cover about 100 sqkm. About 3 billion tonnes explorable coal are there which if properly mined can generate about 20,000 MW power for 25 years. For the energy security of 150 million Bangladeshis it is a massive resource. Modern mining methods adopted in many countries can perfectly address all myths and propagandas, can manage professionally all impacts.

 

Bangladesh imports polluting inferior quality coal from neighbouring country. This coal is seldom used even in that country. They dump it to Bangladesh, which pollutes our environment. Coal merchants and the beneficiaries make huge profit. Our self styled patriots of OGPC do not speak against them. If BAPA is so much concerned about environment then why they do not protest against import of dirty coal?

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