JBIC to provide Tk 340 crore for four gas projects

Dhaka: The Bangladesh Petroleum Exploration and Production Company’s seven-year programme to revitalise the company is set to get a boost as the Japan Bank of International Cooperation is likely to provide Tk 340 crore for four gas projects.
Officials of Petrobangla said that the JBIC, which was likely to arrange the funds for the projects in the next three to four years from the Japan Debt Cancellation Fund, has already pledged to provide Tk 72 crore in the next fiscal year.

The projects include procurement of seismic survey equipments, purchase of a work-over rig and drilling equipments and installation of a 60-kilometre gas transmission line from Semutang gas-field to the Bakhrabad gas distribution system.
Bapex and Petrobangla officials disclosed the information at a meeting with the special assistant to the chief adviser, M Tamim, at Petrobangla’s office.

The state-run gas exploration company recently formulated a seven-year programme to make the company a self-sufficient and independent concern that will need Tk 3,200 crore to be implemented. The Bapex sought Tk 2,000 crore for its programme from the government in phases over a period of seven years.

The government had earlier assured Bapex that around Tk 600 crore might be available for projects like drilling exploration wells at Kapasia, Srikail and Sundalpur structures and developing the Semutang and Shahbazpur gas-fields, he added.

Bapex will be able to invest Tk 600 crore in the sixth or seventh year of the programme when it stands on its own feet, according to the programme.
The government in April approved the programme in principle and asked Bapex to work with the concerned ministries to find out how much fund could be given to Bapex for implementing the programme.

‘If Bapex gets the JBIC’s fund, it will help the government to provide the company Tk 2,000 crore in phases,’ said a Petrobangla official.

The government also agreed in principle that the price of Bapex’s gas should also be increased to Tk 25-Tk 50 per 1,000 cubic feet in phases from the existing Tk 7.