Page 6 - AsianOil Week 03 2021
P. 6

AsianOil                                       SOUTH ASIA                                            AsianOil


       KrisEnergy announces exit from




       Bangladesh’s offshore




        PROJECTS &       BANGLADESH’S flagging offshore exploration
        COMPANIES        scene has taken another knock, following news
                         this week that a shallow-water project has been
                         returned the government.
                           Singapore-listed independent KrisEnergy
                         announced on January 18 that local author-
                         ities had approved the relinquishment of
                         4,475-square km Block SS-11, which lies in the
                         Bay of Bengal.
                           The block’s return took effect on November
                         14, with KrisEnergy noting that the govern-
                         ment had held on to a $5.5mn bank guarantee,
                         which it had fully paid upon signing the produc-
                         tion-sharing contract (PSC) in 2014.
                           Santos Sangu Field operated the block with
                         a 45% stake, while KrisEnergy held 45% and
                         state-owned Bangladesh Petroleum Explora-
                         tion & Production (BAPEX) owned the remain-
                         ing 10%. While Australian independent Santos
                         signed the PSC with KrisEnergy in March 2014,
                         the former then sold its stake to Ophir Energy
                         in 2018 as part of a wider divestment of Asian  Image: KrisEnergy
                         assets. Ophir was later acquired by Indonesia’s
                         Medco Energi.                        Rahman told local business daily The Financial
                           The PSC for Block SS-11 originally had a  Express FE in September 2020.
                         five-year exploration period, but state-owned   Rahman said his division had intended to
                         PetroBangla extended it by two years, amid  launch the round that month, but had post-
                         investors’ waning interest in the country’s  poned it indefinitely given the global economic
                         offshore.                            downturn. The Financial Express reported that
                           All of Bangladesh’s domestic production  the government had originally wanted to set a
                         comes from maturing onshore assets and Dhaka  March 10 deadline for bids, while PSCs were to
                         has tried to bring its offshore on stream over the  have been signed on May 26.
                         years. However, plans for a new offshore bid   The country’s last bid was round in held in
                         round were shelved in 2020, over concerns that  2012, which led to state-owned PetroBangla
                         the coronavirus (COVID-19) pandemic had  signing PSCs for two shallow-water blocks and
                         dampened foreign investor enthusiasm.  one acreage in deep waters in 2013. However,
                           “We are not thinking of launching the bid-  not a single offshore exploration well has been
                         ding round now,” Bangladeshi Energy and  drilled since then, prompting PetroBangla to
                         Mineral Resources Division Secretary Anisur  extend PSCs by two years.™




       India decries Saudi production cuts





        POLICY           INDIA has complained about Saudi Arabia’s   Indian Minister of Petroleum and Natural
                         decision earlier this month to cut crude oil  Gas Dharmendra Pradhan described the deci-
                         production and has suggested the move  sion to cut production levels as a “contradiction”
                         could see oil buyers shift to alternative  in talks with OPEC Secretary-General Moham-
                         energy sources.                      mad Barkindo during the Atlantic Council on
                           Saudi Arabia announced on January 5 that it  January 19.
                         would to cut 1mn bpd of its own crude produc-  Pradhan said the policy was “creating confu-
                         tion in February and March. While most of the  sion for the consuming countries”, before add-
                         other OPEC+ countries will continue produc-  ing that OPEC’s decision may encourage India
                         ing at similar levels, Russia and Kazakhstan will  and other buyers to embrace alternative energy
                         increase their output slightly.      sources more readily.



       P6                                       www. NEWSBASE .com                        Week 03   21•January•2021
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