14-06-08 The High Court (HC) issued a rule asking the government to explain why the invitation of international tender for leasing out 28 offshore blocks for oil-and-gas exploration "should not be declared illegal".
An HC division bench comprising Justice M. Imman Ali and M. Emdadul Haque issued the rule nisi at a time when the bidding process is already underway. The writ is returnable within two weeks.

Petrobangla's chairman, the Law secretary and Energy secretary have been made respondents to the writ. Advocate Munshi Ahsan Kabir and former Bangladesh Bank deputy governor Shah Abdul Hannan filed the public-interest litigation writ.
Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) invited on February 15 international tenders for the offshore bidding round 2008. The economic affairs committee of the council of advisers on January 7 formed a high-powered committee headed by the energy secretary to formulate a model Production-Sharing Contract (PSC) before inviting international tenders.

On February 5, the council of advisers approved the model PSC formulated by the high-powered panel. It was also decided at the meeting of the council of advisers that Petrobangla would invite offers from foreign companies for 28 blocks in approximately 1,50,000 sq km of the sea. Eight of the blocks are located in shallow waters of the Bay of Bengal, and the remaining blocks are in the deep waters.
The HC questioned the authority of the caretaker government to float tenders for oil and gas explorations in both shallow and deep basins of the Bay of Bengal. The court, however, did not impose any embargo on the government's current negotiations on oil and gas production and distribution deals.

The HC bench said its order was based on public interest regarding the country's oil and gas reserves. The court said no embargo is being imposed on deals being negotiated at the moment, as no oil-gas production or distribution deal is expected to be sealed before October.
The writ petition had sought a "freeze order" on any production and distribution agreements that resulted from the tendering process.