Page 6 - AsianOil Week 03 2021
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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