The government is now planning to award the country's offshore seismic survey work to Russian company Gazprom under government to government (G2G) initiative.
The government's change of mind has come after 'wasting' over four years in the name of competitive bidding for multi-client survey.
The idea of multi-client survey was that the selected firm would conduct seismic survey in the country's maritime boundary at its own cost. On completion of the survey, it would share the findings with the state-owned Petrobangla free of cost.
But under the new move Gazprom would have to be paid for its work.
According to the bidding terms of the multi-client survey, the selected firm would have a right to sell the findings and seismic data to aspirant international oil companies (IOCs) interested to participate in oil and gas exploration within Bangladesh maritime boundary.
"We have decided to sign a memorandum of understanding (MoU) with the Russian energy company very soon for the offshore survey," Petrobangla Chairman Md Ruhul Amin told the FE.
High officials of Petrobangla said the draft of the MoU following its approval by the ministry concerned has been sent to the Gazprom.
According to them, the survey will be conducted in 22 offshore blocks out of 26 in the Bay of Bengal. The minimum cost for the survey, covering 35,000 line kilometres, will be US$ between 30 million and $35 million.
Asked why they are going to spend a substantial amount for the survey scrapping the previous option, a senior official, preferring not to be identified, said they are doing it following directives from the high-ups.
Commenting on the move, energy expert Professor Badrul Imam said it is totally unjustified.
"First of all, an expert committee evaluated the bidding process for the multi-client survey and recommended some reputed companies for the purpose. Why was that cancelled?"
"Secondly, the survey could be done free of cost and maintaining transparency through a competitive bidding. But, now the whole thing seems weird to me," Professor Badrul told the FE.
Bangladesh has been trying to award its offshore gas blocks to IOCs since settlement of maritime boundary disputes with neighbouring India and Myanmar, but the efforts were not very successful.
Many officials blamed the lack of seismic data concerning the gas blocks for the failure to attract IOCs to explore the blocks.
However, India and Myanmar have been successful in awarding their offshore blocks because of available data, said the Petrobangla officials.
The Energy Division took its first move for conducting the multi-client seismic survey about four years back. But after selection of an international firm through tender process, the Prime Minister's Office (PMO) cancelled the process.
The first tender to conduct the survey was called in March 2015, but the government failed to award contract to any of the bidders at that time.
During the first bidding, a government evaluation committee recommended the Energy and Mineral Resources Division to sign a deal with a Norway-US joint venture company TGS-NOPEC and Schlumberger to conduct the survey.
Again the energy ministry took a fresh move for the multi-client seismic survey. Subsequently, Petrobangla selected an international firm to assess hydrocarbon potentials in the country's offshore gas blocks.
During the second bidding, following a rift in a meeting of the Cabinet Committee on Economic Affairs in August 2016 a high-powered body was constituted, headed by the law minister.
The body was asked to inquire whether there was any irregularity in the energy ministry's tender process for selecting a foreign firm for the job. But the report was in favour of the evaluation committee, sources said.
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