[A nation can never rise and flourish unless it learns how to manage
and use its natural resources. It is im****tant to learn the lessons
from the mistakes before it is too late. It is high time to reframe
and restructure our attitude, commitment and vision to safeguard the
nation=EF=BF=BDs interests and well-being, writes Dr Aftab Alam Khan]
http://www.newagebd.com/2008/may/03/edit.html#2
New Age, Dhaka, bangladesh
Saturday, May 3, 2008
Playing with energy resources and our future
ENERGY resources are the backbone of a nation. The prosperity of a
nation largely depends on proper exploitation and utilisation of such
resources to meet the ever-growing energy demands. Our predecessors
found natural resources and exploited them. They were aware that these
resources had geologic limits, and they knew that some day these
resources would be depleted. Depletion was a matter of concern for
people, for communities, and sometimes for the entire nation.
Unfortunately, our energy resource sectors are in such a devastating
state that one sensible citizen with a minimum prudence has no other
option rather than to be frightened.
Bangladesh is one of the smallest but most densely-populated
countries in the world. It is blessed with natural resources like gas
and coal. The exploration for oil and gas in Bengal region began as
early as 1910 during the British colonial rule. After the Second World
War, the oil exploration activities began in 1951 by such oil
companies as Shell, Stanvac and British Petroleum and continued until
1971 with an eyewash partner****p with the PPL and the OGDC. Most of
the gas discoveries inside Bangladesh territory were made during this
phase. Until this point of pre-independence phase, these gas
discoveries could not draw any serious attention of the Pakistani
rulers because it was in East Pakistan or even of foreign oil
companies because of their interest in oil.
So, the immediate post-independence phase of Bangladesh emerged as
the most virgin field where we could establish absolute control of the
natural resource sectors for its promotion and development, and for
economic emancipation of the nation. But, unfortunately, due to lack
of political will, knowledge, honesty and a minimum love for the
country, the entire gas resource has either gone into the control of
the international oil companies or plundered by some vested interest
groups to serve the purpose of the international oil companies. One
cannot solely blame the international oil companies; after all, they
are here to do business, to derive maximum benefits, legally and
illegally. The misdeed of those who framed the production-sharing
contracts and leased out the entire on-shore region and discovered and
known gas fields to the international oil companies are largely to
blame.
After independence, the Bangladesh Petroleum Act 1974 was
promulgated and six oil companies such as ARCO, Union Oil, BODC
(Nippon Oil), Inanaftaplin (Yougoslav State Oil), Canadian Superior
Oil, and Ashland all ventured into offshore oil exploration in
compliance with the production-sharing contracts formulated under the
Bangladesh Petroleum Act 1974. All the companies wound up their
exploration activities by 1977 simply because they could not discover
oil, although Union Oil found gas in the Kutubdia well. To expedite
petroleum exploration, the World Bank-assisted Petroleum Exploration
Promotion Project was undertaken in 1984 and a new model production-
sharing contract was formulated in 1988, obviously on the bank=EF=BF=BDs
prescriptions.
Until early 1990s, for about 15 years after the international oil
companies left, the government, policymakers, and professionals
involved in the natural resource and energy sectors had ample time to
shape and format policies and visions for exploration and exploitation
of natural resources for the benefits of the people and the country.
Instead, during this period, a ground was prepared where both the
international oil companies and the governments could play very
selfishly with the people=EF=BF=BDs natural resources. It was a phase of
wha=
t
could be called economic terrorism. It is difficult to find any
sensible reason as to why it was necessary to lease out blocks 9, 10,
12, 13, 14 and 15, which were already known to be gas-rich, to the
international oil companies when the state-owned BAPEX continued to
strike gas every three wells at a cost of about Tk=EF=BF=BD200 crore.
It was the time when BAPEX discovered the Shahbazpur field with
recoverable gas worth Tk=EF=BF=BD6,500 crore. Unfortunately, no blocks
were
kept for BAPEX for exploration and development. The Jalalabad field
with recoverable gas worth Tk=EF=BF=BD17,500 crore was leased out to
Unocal
for a ghost payment of about Tk=EF=BF=BD385 crore. Now, we are buying the
ga=
s
that we discovered from Unocal at double the price. Also, the Feni and
Chhatak gas fields were declared marginal under dubious cir***stances
and a shady deal was struck with Niko. The Feni and Chhatak fields
never reached a status as to be declared marginal. According to
Petrobangla statistics of June 2000, the Chhatak field had recoverable
gas reserve of 1.113tcf, which, at present rate, would translate into
about Tk=EF=BF=BD22,000 crore. Cairn Energy was also allowed to manipulate
t=
he
=EF=BF=BDcost recovery=EF=BF=BD amount from the Sangu field where an
initial=
$90
million was raised to $190 million and eventually to $267 million.
This has resulted in a twofold loss for us, one from cost recovery
payment and other from an exorbitant estimate of gas reserve. When the
gas sector is strewn with such high-profile corruption, another drama
has emerged with the coal resource, apparently to be captured,
controlled and destroyed. Even if the environmental and social costs
are ignored, how can one ignore the financial cost? It has been
estimated that the country would incur a loss of $37 billion
(Tk=EF=BF=BD2,59,000 crore) if both Phulbaria and Barapukuria coalfields
are=
given to foreign investors for open-pit mining.
The pertinent questions are how best we can face and meet the
challenges of energy crisis that is likely to emerge in a very near
future. We have very limited options left and those need to be
considered with extreme priority. We need to launch a massive search
for gas discovery largely by our own technical and financial
resources, especially in the on-shore region where the international
oil companies have already relinquished their blocks. Still there are
very good structures, at least known, like north Sitakunda, south
Nila, and St Martin=EF=BF=BDs island where BAPEX must go for drilling on
priority basis. Detailed geological studies indicate good
possibilities of gas strike in these structures.
A nation can never rise and flourish unless it learns how to manage
and use its natural resources. It is im****tant to learn the lessons
from the mistakes before it is too late. It is high time to reframe
and restructure our attitude, commitment and vision to safeguard the
nation=EF=BF=BDs interests and well-being.
|
