Prime Minister Sheikh Hasina has approved signing of a gas purchase and sales agreement (GPSA) with Santos Limited, allowing third-party gas sales in the offshore block 16 in the Bay of Bengal.
"We got PM’s approval on signing GPSA with Santos Limited before she left Dhaka for Istanbul to participate UN LDC Group Summit," a senior official of the energy and mineral resources division told daily sun.
He said the GPSA signing might be held in next week.
The Ministry of Power, Energy and Mineral Resources would forward a directive immediately to take necessary measures about the matter, the official said on the condition of anonymity.
"Petrobangla is ready to sign the GPSA if the Energy and Mineral Resources Division directive come to us," Petrobangla chairman Prof Hossain Monsur told daily sun.
He added that the Petrobangla yet to get any directive in this matter.
Last week, Prime Minister’s Power and Energy Adviser Dr Tawfiq-e-Elahi Chowdhury said the government will sign deal with the Australian oil giant Santos Limited in May to explore wells in coming winter.
The Santos has already submitted a proposal to the energy division to drill two development wells at Sangu-11 and South Sangu-3 and an exploration well in Megnama-2 structure in coming winter. It has a plan to invest $100 million to drill wells in the block.
After signing the agreement, new investment would consider to third party gas sales within the country, official said.
The law ministry has recently approved vetting to sign GPSA on third-party gas sales, allowing fresh investment in offshore block-16.
Santos acquired Cairn Energy Sangu Field Limited (CEFSL) in the country last year.
With the takeover, Santos secured 100 percent ownership of Megnama, an extension of the block-16, and 75 percent rights of Sangu structure in the bay.The remaining stake of Sangu field belongs to another multinational Halliburton.The power, energy and mineral resources ministry, meanwhile, signed an agreement with Cairn Energy to facilitate sales of their additional gas to third party, other than the government, to increase gas supply to Chittagong.
Industrial production in Chittagong is hampered due to gas crisis for the last couple of years as gas-fired power plants suspended electricity generation for shortage of fuel.
This has also caused frequent power cuts across the country, officials said.
Bangladesh Power Development Board official said the generation of electricity across the country has fallen by about 200MW due to gas crisis.
"We got PM’s approval on signing GPSA with Santos Limited before she left Dhaka for Istanbul to participate UN LDC Group Summit," a senior official of the energy and mineral resources division told daily sun.
He said the GPSA signing might be held in next week.
The Ministry of Power, Energy and Mineral Resources would forward a directive immediately to take necessary measures about the matter, the official said on the condition of anonymity.
"Petrobangla is ready to sign the GPSA if the Energy and Mineral Resources Division directive come to us," Petrobangla chairman Prof Hossain Monsur told daily sun.
He added that the Petrobangla yet to get any directive in this matter.
Last week, Prime Minister’s Power and Energy Adviser Dr Tawfiq-e-Elahi Chowdhury said the government will sign deal with the Australian oil giant Santos Limited in May to explore wells in coming winter.
The Santos has already submitted a proposal to the energy division to drill two development wells at Sangu-11 and South Sangu-3 and an exploration well in Megnama-2 structure in coming winter. It has a plan to invest $100 million to drill wells in the block.
After signing the agreement, new investment would consider to third party gas sales within the country, official said.
The law ministry has recently approved vetting to sign GPSA on third-party gas sales, allowing fresh investment in offshore block-16.
Santos acquired Cairn Energy Sangu Field Limited (CEFSL) in the country last year.
With the takeover, Santos secured 100 percent ownership of Megnama, an extension of the block-16, and 75 percent rights of Sangu structure in the bay.The remaining stake of Sangu field belongs to another multinational Halliburton.The power, energy and mineral resources ministry, meanwhile, signed an agreement with Cairn Energy to facilitate sales of their additional gas to third party, other than the government, to increase gas supply to Chittagong.
Industrial production in Chittagong is hampered due to gas crisis for the last couple of years as gas-fired power plants suspended electricity generation for shortage of fuel.
This has also caused frequent power cuts across the country, officials said.
Bangladesh Power Development Board official said the generation of electricity across the country has fallen by about 200MW due to gas crisis.