Draft onshore, offshore model PSCs approved


DHAKA, July 24, 2019 (BSS) – The Cabinet Committee on Economic Affairs today approved the drafts of the Onshore Model PSC 2019 and the Offshore Model PSC 2019 in a bid to attract more bidders in the country’s onshore and offshore gas blocks.

The approval came from a meeting of the Cabinet Committee on Economic Affairs today held at the Cabinet Division conference room with Finance Minister AHM Mustafa Kamal in the chair.

Briefing reporters after the meeting, the Minister said more studies are needed to ascertain what are underneath the water at the Bay of Bengal.

He said the indicative price under the draft Onshore Model PSC would be $6.5 for per Mcf (per thousand cubic feet) while it would be $7.26 McF (per thousand cubic feet) under the Offshore Model PSC.

Kamal said the price rates are subject to changes and the price would be applicable as of that time in Asia.

He said that despite repeated floating of tenders, the government could not attract the bidders. “We’re moving afresh so that we can get successes.”

The Economic Affairs Committee meeting gave nod to three other proposals including one to construct bay terminal at Chattogram.

The Finance Minister said PSA of Singapore, which is a very experienced company in this sector, would invest $2.5 billion for the project.