25-03-09 Prime Minister's Adviser Dr Towfique Elahi Chowdhury has given the go ahead signal to the outcome of the third round offshore bidding, which was held during the last caretaker regime.
The US oil company ConocoPhillips and the Irish oil company Tullow were the successful bidders. The US company will be awarded eight blocks to conduct different types of exploration activities in the deep-sea regions. These are blocks 10, 11, 12, 15, 16, 17, 20 and 21. Tullow will be awarded block 5 of the deep-sea region.

The third round bidding process was conducted under the model PSC-2008 in which it was proposed that the per unit (m cf) gas price would be $ 4. The price was calculated keeping in mind the oil price at $ 180 per ton.
The IOCs were asked to submit their bid documents in February 2008, which were opened on May 7, 2008. Seven IOCs submitted their bid documents and offers of the ConocoPhillips and Tullow were found attractive.

The bid evaluation committee headed by Petrobangla's former director (planning) Mokbul Elahi recommended for awarding the blocks to the successful bidders. But the caretaker administration refrained from taking a decision on the sensitive issue as a group of people raised the question about the caretaker government's jurisdiction to decide on such a national issue.
After a careful examination, the council of advisers asked the energy division to place the matter before the elected government. The delay in taking the decision has caused frustration among the IOCs as they would miss the next dry season to conduct their operation.

The 3rd round bidding has also created some controversies among Bangladesh neighbours -- Myanmar and India. Both claimed that some blocks fell within their maritime boundary and urged Bangladesh not to proceed with the offshore bidding process without demarcating the maritime boundary.
Bangladesh turned down the protests of its neighbours and maintained that both Myanmar and India opted for offshore bidding without discussing this with Bangladesh. The Myanmar authorities lodged complains against Bangladesh in the UN.

Both Myanmar and India had taken some provocative measures to foil the 3rd round bidding. The Yangoon authorities awarded a block to a Korea company, which falls within the Bangladesh maritime boundary, which force Dhaka to send a Navy ship to stop illegal activities of the Myanmar government.
On the other hand, the Delhi administration dispatched a survey ship within the Bangladesh water territory to conduct some geological surveys later on. The ship was withdrawn as Dhaka made strong protest to the Delhi administration.

After assumption of the governmental responsibilities, the government headed by Sheikh Hasina asked the Prime Minister's energy adviser to scrutinize the 3rd round bidding process and give his opinion. The Energy Adviser very recently opined to accept the outcome of the 3rd round bidding.
The matter would now travel to the cabinet for its approval, the source said.