DHAKA: Six years gone by after the expiry of the agreement, Ocean Bangladesh Corporation (OBC), a sister concern of the US-based Ocean Energy, has again applied for extending its contract on exploration in Block 22 in the Chittagong Hill Tracts.

The OBC sent its application to the Prime Minister on May 11, official sources said.  

But Energy Division and Petrobangla both said the plea made by Ocean is not acceptable.

A high official of the Energy Division, on condition of anonymity, told banglanews24.com.bd that the Energy Division would forward its opinion to the PM Office within this week.

The Ocean authority in its plea said: “We’ve been working in Block 22 in the CHT for long. We’ve also drilled well there for gas exploration but did not continue for some reasons. “Now we again want to begin exploration in Block 22. For this reason, we request for extending the tenure of the PSC (production-sharing agreement).”

A competent source said that the Prime Minister’s Office on May 31 forwarded the application to the Power and Energy and Mineral Resources Ministry for examining it.

Later on June 9, Energy Division sent a letter to Petrobangla seeking opinion while the latter passed its opinion to the Energy Division again on June 12 after examining the application, the source said.

The state-run petroleum corporation informed that the agreement ended six years ago and the company, during the contract period, conducted its exploration works at a slow pace. If Ocean wants to resume its work in the block, then it would have to compete with the other companies during next onshore bidding.

The Energy Division also agreed to the Petrobangla opinion.

Petrobangla Chairman Prof Dr Hossain Mansur told banglanews24.com.bd, “We gave our opinion in this regard. Now the ministry will look into the matter.”

Earlier in 2004, Ocean had appealed for extending the term of the four-year agreement, but it was not accepted.    

The government had signed a Production Sharing Contract (PSC) with US-based United Meridian Corporation in 1996 for drilling Block 22 in the CHT. But the United Meridian Corporation regretted and left the ownership to Ocean Bangladesh Corporation in 1997.

Although Ocean was assigned to drill the CHT for exploring oil and gas till 2004, the company abandoned its works in 1999 after drilling a well at Kasalang of Khagrachhari district.

The company did not take further initiative to continue its works till the end of the contract.

BDST: 1934 HRS, AUG 14, 2010