Petrobangla Production Sharing Contract Presentation
Petrobangla Production Sharing Contract Presentation
Petrobangla Production Sharing Contract Presentation
&
Production Sharing Contract
Emergence of Petrobangla
Bangladesh Mineral Oil & Gas Corporation (BMOGC) was created through PO
#27 on March 26, 1972.
Minerals operation segregated & vested to BMEDC, through PO #120 on Sept.
27, 1972.
Reconstituted Bangladesh Oil & Gas Corporation (BOGC) was short named
Petrobangla through the Ordinance #15, on August 22, 1974.
Importation, Refining & Marketing of crude & petroleum products vested with
BPC through Ordinance #88, on November 13, 1976.
BOGC & BMEDC merged to form Bangladesh Oil, Gas & Mineral Corporation
(BOGMC), by the Ordinance #21 of April 11, 1985.
Partial modification of the Ordinance by the Law 11 of February 1989, the
corp. was short named Petrobangla & given the authority to hold the shares
of the companies dealing in oil, gas & minerals exploration and development.
2
Petrobanglas Vision
To Provide Energy for the Sustainable Economic
Growth and Maintain Energy Security of the
Country.
To Provide Energy to All Socio - Economic Groups
in All the Areas of the Country.
To Diversify Usage of Indigenous Energy.
To Contribute Towards Protection of Environment
of the Country
Petrobanglas Mission
To Expedite Exploration and Exploitation of Oil, Gas,
Coal, and Mineral Resources
To ensure conservation of energy through judicious use
To Carry Research and Development in the Field of
Exploration and Exploitation of Energy and Mineral
Resources
To Promote CNG and LPG for Protection of Environment
To Encourage Foreign and Private Investment in Oil, Gas
and Mineral Sector
Institutional Capacity Building for Achieving the Goals
and Objectives
Exploration &
Production
Bangladesh
Petroleum Expl. &
Prod. Co. Ltd.
Production
Transmission
Distribution
Bangladesh Gas
Fields Co. Ltd.
Gas Trans.
Co. Ltd.
Sylhet Gas
Fields Ltd.
Bakhrabad
Gas Sys. Ltd.
Rupantarita
Prakritic Gas
Co. Ltd.
Mining
Barapukuria
Coal Mining Co.
Ltd.
Maddhyapara
Granite Mining
Co. Ltd
Jalalabad Gas T
& D System Ltd.
Pashchimanchal
Gas Co. Ltd.
GAS MANAGEMENT
BGFCL
SGFL
BAPEX
NIKO
CHEVRON
TULLOW
CAIRN
GTCL
JGTDSL
CONSUMER
TGTDCL
CONSUMER
PGCL
BGSL
CONSUMER
6
CONSUMER
Production
Niko
0%
Chevron
35%
CNG
3%
TGTDCL
22%
BGFCL
42%
SGFL
11%
BAPEX
3%
Tea
Tullow
4%
BGSL
5%
Transmission
Cairn
5%
JGTDSL
3%
Domestic
Power
43%
Gas
Supply
Chain
Industry
14%
JGTDS L
4%
P GCL
3%
Distribution
Tea
CNG
Domestic Total
11%
Comm N egl
1.531 35.846 154.313 1401.9
1%
0%
3%
11%
100%
GTCL
70%
BGS L
18%
Captive
12%
TGTDCL
Fertiliser
16%
Avg. Consumption
75%
Capacity (MMSCFD)
14
405
Bakhrabad
34
Habiganj
246
Narsingdi
35
Meghna
Sylhet
Kailastila
97
Rashidpur
53
Beanibazar
18
Saldanadi
11
Fenchuganj
17
Sangu
70
Jalalabad
230
Moulavibazar
100
12
450
Feni
Bangura
70
79
1838
Gas Fields
Titas
Bibiyana
Total:
Total
Petrobangla Companies
923 MMSCFD
IOCs
915 MMSCFD
Available
Production
Titas
405
397
Bakhrabad
34
33
Habiganj
246
Narsingdi
Fields
Gas Mkt.
Company
Sector
Amount
Power
576
Fertilizer
111
245
Non-bulk
681
35
35
Comp-total
1368
Meghna
Power
77
Sylhet
Fertilizer
65
Kailashtilla
97
96
Non-bulk
135
Rashidpur
53
53
Comp-total
276
Salda
11
12
Power
44
Fenchuganj
17
19
Fertilizer
10
923
906
Non-bulk
35
Sangu
60
61
Comp-total
89
Jallabad
230
147
Power
69
Moulavibazar
100
76
Fertilizer
Bibiyana
450
528
Non-bulk
10
Feni
Comp-total
79
Bangura
70
69
Power
766
S-Total (IOCs)
915
886
Fertilizer
186
Total
1838
1792
Non-bulk
860
Total
1812
S-Total (PB)
TGTDCL
BGSL
JGTDSL
PGCL
Overall
(GIIP)
21.265
Proven
15.4035
Proven Recoverable
Production
7.42
7.98
Proven Remaining
Probable
Recoverable
5.4711
Possible
Recoverable
7.6918
0
10
15
20
25
Gas in TCF
10
(MMSCF)
FY
Power
Fertilizer
Non-Bulk
Total
2007-08
658
272
689
1619
2008-09
688
272
764
1725
2009-10
774
278
844
1896
2010-11
812
278
932
2022
2011-12
872
278
1008
2158
2012-13
986
278
1076
2340
2013-14
1097
278
1144
2518
2014-15
1177
278
1215
2669
2015-16
1288
278
1287
2853
2016-17
1388
278
1364
3030
2017-18
1519
278
1442
3240
2018-19
1704
278
1527
3509
2019-20
1921
278
1618
3818
11
(MMSCF)
FY
TGTDCL
BGSL
JGTDSL
PGCL
S&SW
Total
2007-08
1152
294
88
84
1619
2008-09
1168
312
88
83
74
1725
2009-10
1289
346
97
84
80
1896
2010-11
1274
416
106
97
128
2022
2011-12
1365
451
115
109
120
2158
2012-13
1513
464
116
115
132
2340
2013-14
1617
538
117
116
130
2518
2014-15
1723
544
180
108
115
2669
2015-16
1895
560
152
116
129
2853
2016-17
1979
624
149
104
174
3030
2017-18
2106
698
151
107
178
3240
2018-19
2229
772
155
110
243
3509
2019-20
2409
802
168
185
254
381812
(MMSCF)
FY
Power
Fertilizer
Others
Total
2007-08
810
289
801
1900
2008-09
886
289
843
2018
2009-10
1191
289
890
2370
2010-11
1284
325
1011
2620
2011-12
1434
325
1088
2847
2012-13
1475
375
1171
3021
2013-14
1588
375
1261
3224
2014-15
1700
375
1360
3435
2015-16
1822
375
1403
3600
2016-17
1960
375
1488
3823
2017-18
2093
375
1577
4045
2018-19
2255
375
1673
4303
2019-20
2417
375
1775
4567
13
(MMSCF)
FY
TGTDCL
BGSL
JGTDSL
PGCL+ S&SW
Total
2007-08
1340
362
122
76
1900
2008-09
1384
413
127
94
2018
2009-10
1560
463
137
210
2370
2010-11
1664
475
232
249
2620
2011-12
1760
491
233
363
2847
2012-13
1808
563
234
416
3021
2013-14
1932
636
235
421
3224
2014-15
2062
656
237
480
3435
2015-16
2139
660
263
538
3600
2016-17
2290
702
290
541
3823
2017-18
2440
744
316
545
4045
2018-19
2621
788
344
550
4303
2019-20
2778
808
426
555
456714
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
2016
-17
201718
2018
-19
2019
-20
BGFCL
740
781
876
931
1055
1085
1155
1175
1175
1170
1170
1077
1005
SGFL
202
199
223
300
300
370
475
530
550
610
660
660
660
BAPEX
49
62
141
196
240
270
258
238
240
205
184
138
133
Total
991
1042
1240
1427
1595
1725
1888
1943
1965
1985
2014
1875
1798
COMPANY
15
200708
200809
200910
201011
201112
201213
201314
201415
201516
201617
201718
(MMSCF)
201819
201920
905
905
1075
1125
1080
1050
1010
990
950
930
890
870
870
Cairn
70
65
60
55
150
145
140
135
130
125
120
120
100
Tullow
80
100
100
100
100
100
100
100
100
100
100
100
100
45
30
30
25
20
15
15
1061
1076
1280
1310
1360
1320
1270
1240
1195
1155
1110
1090
1070
Niko
Sub-Total
100
200
200
200
200
200
200
200
200
Cairn
100
100
100
100
100
100
100
100
Total EP
50
100
100
100
100
100
100
100
Sub-Total
100
350
400
400
400
400
400
400
400
Sub-Total
300
500
500
500
500
1310
1460
1670
1670
1640
1895
2055
2010
1990
1970
1061
1076
1280
16
(MMSCFD)
2007
-08
2008
-09
200910
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
2016
-17
201718
201819
Demand
2006
2261
2383
2749
3142
3458
3587
3796
4018
4126
4250
4330
Production
(PB + IOC-1)
2052
2118
2737
2955
3045
3158
3183
3160
3140
3124
2965
2868
Balance
46
-143
-12
-187
-413
-429
-613
-858
-986
-1126
-1365
-1634
Events
2520
137
201920
4502
17
Gas mmcfd
5000
4000
3000
2000
1000
Proved
Probable
Possible
25
20
23
20
21
20
20
19
17
20
15
20
13
20
11
20
09
20
07
20
20
05
Case B Demand
18
Gas Infrastructure
Gas Pipeline Network
Existing
Total Capacity : 2,000 MMCFD
Total Length : 1,900 Kilometer
Compressor
Stations
Rajshahi
Nalka
Elenga
Future Expansion:
Muchai
Ashuganj
(West)
Ashuganj
(South)
Khulna
West Zone
Proposed Gas
Pipeline
540km
Length
(Km)
Nominal
Diameter
(Inches)
Maximum
Allowable
Operating
Pressure
Capacity
(mmcf)
Commissioned
In the year
North-South
175
24
1135
350
1993
Ashuganj-Bakhrabad
58
30
1000
500
1998
Rashidpur-Ashuganj
[75+82]=157
30,14
1135
500
2002/2004
BeanibazarKailashtila
18
20
1135
200
2001
Ashuganj-Elenga
124
24
1000
270
1992
Elenga-Baghabari
[14+9+16+35]=
74
[24,30,24,20]
1000
200
1999
Bakhrabad-Demra
68
20
1000
250
1985
BakhrabadChittagong
175
24
960
350
1982
Nalka-Bogra
[6+54]
=60
[30,20]
1000
200
2005
Ashuganj-Monohordi
37
30
1000
425
2006
Dhanua-Aminbazar
60
20
1000
2006/2007
20
Completion Time
Funded By
Size
Dec 2011
ADB
12000 hp
Dec 2011
ADB
18000 hp
June 2009
ADB
30x51km
Elenga Compressor
June 2011
ADB
10000 hp
Hatikamrul-Ishwardi-Bheramara Pipeline
June 2010
ADB
30x87km
Bonpara-Rajshahi Pipeline
June 2009
ADB
12x51km
Bheramara-Khulna Pipeline
June 2011
ADB
20x165km
June 2010
ADB/GOB
24x14km
Bakhrabad Siddirganj
June 2010
WB
30x60km
Dec 2011
ADB
30x235km
BB Corridor Expansion
Monohordi-JMB East Loopline
Expansion to West Zone
21
Company
Well
Period
Production
(MMSCFD)
Dev. Well
Workover
BAPEX
Fenchuganj
#2
May-June
08
15
BGFCL
BKB # 2, 5
Oct.-Dec. 08
20
Tullow
Bangura
June-Dec.
08
30
65
Total
3
22
Company
Well
Period
Production
Appraisal
MMSCFD Well/Workover
Dev. Well
BAPEX
Shahbajpur
May-Aug 09
20
BGFCL
BKB#9
July-Sept. 09
10
BGFCL
Meghna#1
Aug-Nov 09
15
BAPEX
Semutung
Feb.-July 10
20
BAPEX
Begumganj
Sept.-Oct. 10
30
BGFCL
Titas # 17
Jan-Mar 10
25
BGFCL
Titas # 18
May-Aug 10
25
SGFL
Kaillastila # 7
Jun-Oct 10
25
BGFCL
Habiganj # 12
Sep-Dec 10
25
BAPEX
Sundalpur
Jan-June 10
30
BAPEX
Srikail
Feb.-Jun 11
30
Total
255
23
Programs
Exploration in Block # 5,7,10
Period
Production
MMSCFD
Nov 08
June 12
200
Nov 08
June 12
50 - 100
Cairn
Nov 08
June 12
100
2009-2016
300 - 500
24
25
On Contracts
These slides are taken from the Training
materials of IHRDC,Boston,MA,USA
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
During the period 1972-2008, 173 wells including 26 offshore wells were
drilled by the national organization Petrobangla and foreign oil companies.
Petrobangla discovered 10 gas fields including oil discovery in two gas
fields below the producing gas sands and the foreign companies
discovered five gas fields of which two are in the offshore area.
50
Nos
3
3
1
1
55
57
58
Contractor(s)
Contract Period
RELINQUISHMENT
JRC shall consist of eight (8) members, three (3) of whom shall be
designated by Petrobangla, one (1) by Government and four (4) by
Contractor.
62
BANK GUARANTEE
Within thirty (30) days of the signature of the Contract, and upon
each request for extension of the Exploration Period, Contractor
shall provide Petrobangla an irrevocable and unconditional bank
guarantee in form and substance.
63
CONTRACTOR'S OBLIGATIONS
Register within one hundred and eighty (180) days of the Effective
Date a subsidiary or branch or representative office in accordance
with the relevant provisions of Applicable Law
64
Within thirty (30) days after the Date of Declaration of the first
Commercial Discovery, a Joint Management Committee (JMC)
shall be established by Government/Petrobangla and Contractor .
JMC shall consist of eight (8) members, three (3) of whom shall be
designated by Petrobangla, one (1) by Government and four (4) by
Contractor.
67
70
PROFIT SHARING
The Profit Petroleum shall be allocated between Petrobangla
and Contractor in the following proportions:
Type A Block
Oil/Condensate/NGL: Biddable from 55% to 80% on tranches from 12,500
to 100,000 bbl/day or above
Gas: Biddable from 55% to 80% on tranches from 75 to 600 mmscf/day
or above
Type B Block
Oil/Condensate/NGL: Biddable from 50% to 75% on tranches from 12,500
to 100,000 bbl/day or above
Gas: Biddable from 50% to 75% on tranches from 75 to 600 mmscf/day
or above
71
NATURAL GAS
Contractor shall have the right to produce annually a total volume of Gas up to 7.5%
of the Proven Recoverable Gas reserves from onshore blocks
In case of offshore blocks a greater percentage may be agreed by Petrobangla and the
Contractor
Natural Gas for Export
Contractor shall have the right to export any Marketable Natural Gas produced from
the Contract Area in the form of Liquefied Natural Gas ("LNG"), subject to first right of
refusal of Petrobangla
Gas Price
Onshore gas: 75% of HSFO with biddable discounts. The price will have a
floor of US$70/metric ton and a ceiling of US$180/metric ton of HSFO
Offshore gas (Type A blocks): 25% higher than the onshore gas price
Offshore gas (Type B blocks): 100% of the HSFO
Western zone (Onshore): 25% higher than for the other onshore gas price
72
PIPELINES
Contractor shall have the right to operate the Pipeline until cost
recovery is completed. If Petrobangla so desires the Contractor
shall continue to operate the Pipeline after the Cost Recovery .
VALUATION OF PETROLEUM
Spot price and FOB selling price will be taken from Platt's Oilgram
or Asian Petroleum Price Index (APPI)
74
76
77
as it
78
79
EMPLOYMENT, TRAINING
AND TECHNOLOGY TRANSFER
Together with the yearly Work Program and Budget, Contractor shall submit
its manpower requirements including its organization chart.
Contractor shall first obtain written approval from Petrobangla for any
positions to be filled by expatriate personnel by ensuring that expatriate
personnel are employed only to occupy positions for which it has not been
possible to obtain Bangladesh personnel. [This clause will not be applicable
for the Exploration Period of offshore blocks]
The Parties shall make their best efforts to settle any dispute
amicably through consultation
82
ASSIGNMENT
83
ASSIGNMENT
The assignor shall submit a valuation and all material terms of the assignment.
Any transfer or related taxes, stamp, duty, charges or other fees from any
assignment shall be borne by Contractor.
84
UNITIZATION
85
ABANDONMENT
Contractor shall not have to be liable for both payment into the
Abandonment Fund and the actual cost for Abandonment of
Petroleum facilities carried out by Contractor during the term of this
Contract.
BID AREA
Number of blocks on offer: 28 offshore blocks
The shallow water blocks situated north of 20 N
latitude are categorized as Type-A
The deep water blocks situated south of 20 N
latitude are categorized as Type-B.
Size
Average size of Type-A blocks ~6,000 sq.km.
Average size of Type-B blocks ~3,300 sq.km.
Water Depth
Water depth of Type-A blocks: upto 200 meter.
Water depth of Type-B blocks: above 200 meter.
87
Evaluation Criteria
Seismic Survey
Wells
Other Surveys (Geochemical, Seabed Sampling, Gravity, Magnetic, Sea bed mapping
etc.)
Bank Guarantee
Fiscal Package:
Percentage of Profit Petroleum Allocation: Biddable from the minimum level for
each tranche as per PSC Article 14.6. The bidder offering higher profit petroleum share
indicating better NPV to the government will be more favorably evaluated.
[30 marks]
[70 marks]
88
joint
venture, at least one member must hold an offshore acreage as operator, with an
offshore daily production of at least 25,000 BOE to be considered as technically
qualified for bidding.
90
AVAILABILITY OF DATA
Information Package: Includes the detailed Notice Inviting Bids, a brochure
providing geological and related information, details of the blocks offered, the
Model Production Sharing Contract-2008, The National Energy Policy-1995,
The Bangladesh Petroleum Act-1974, Promotional Package order form with
content and Data Sales Package order form with content and price. The
Information Package will be available at a cost of TK. 7000 or US $ 100.
Promotional Package: Includes 28 maps/sections representing geology of the
country. Purchase is mandatory to qualify for bidding. Price is US$ 7,500 or
BDT 525,000.
Data Packages: Contains seismic sections, gravity, magnetic, geological
maps, wire line logs and geochemical data etc. to enable companies to assess
the geological prospects of the blocks on offer. Several Data Sales Packages
are available at different prices.
91
Way Forward
Steps to be taken to meet future energy demand:
Exploration Efforts to be Strengthened to Discover More Gas
by Petrobangla and IOC
94