DHAKA, Feb 11 - The amount of natural gas produced in Bangladesh by international oil companies (IOCs) has exceeded the output of domestic state-run oil firms for the first time, a senior energy official said on Wednesday.
Of total daily gas production totalling nearly 1,825 million cubic feet (mmcf), international oil firms are supplying about 920 mmcf while the rest is being produced by domestic firms.
"Successive governments did not provide adequate funds to domestic firms which makes them incapable to develop and explore more natural gas from new discoveries," said Jalal Ahmed, chairman of the state-run Bangladesh Oil, Gas and Mineral Corporation or Petrobangla.
Foreign companies involved in gas exploration and production in Bangladesh include Chevron (CVX.N), Cairn Energy (CNE.L), Tullow (TLW.L), Total SA (TOTF.PA), Santos International (S2625.MC), Halliburton (HAL.N) and Niko Resources (NKO.TO).
The total share of gas from IOCs was only 24 percent in the fiscal year to June 2004 and it has now risen to about 51 percent, officials said.
Gas production by the state-run Bangladesh Gas Fields Company, Sylhet Gas Fields Company and Bangladesh Petroleum Exploration and Production Company has dropped substantially during the last two years as they failed to find new fields.
"The past governments also did not pay proper gas prices to the state-run gas and oil companies," another official said.
"Petrobangla was compelled to buy more gas from the IOCs to meet the growing demands," Jalal told Reuters.
Petrobangla officials said it was incurring a loss of about $12 million a month through purchasing gas from IOCs at a higher price than that paid by consumers.
Petrobangla purchases gas from domestic firms at between 7 and 25 taka per unit or 1,000 cubic feet, compared with 130 taka from the international firms.
The government will invest an extra $465 million in the Bangladesh Petroleum Exploration and Production Company and increase the price it receives for its gas to give it more cash to explore for new fields, officials said last month.
Of total daily gas production totalling nearly 1,825 million cubic feet (mmcf), international oil firms are supplying about 920 mmcf while the rest is being produced by domestic firms.
"Successive governments did not provide adequate funds to domestic firms which makes them incapable to develop and explore more natural gas from new discoveries," said Jalal Ahmed, chairman of the state-run Bangladesh Oil, Gas and Mineral Corporation or Petrobangla.
Foreign companies involved in gas exploration and production in Bangladesh include Chevron (CVX.N), Cairn Energy (CNE.L), Tullow (TLW.L), Total SA (TOTF.PA), Santos International (S2625.MC), Halliburton (HAL.N) and Niko Resources (NKO.TO).
The total share of gas from IOCs was only 24 percent in the fiscal year to June 2004 and it has now risen to about 51 percent, officials said.
Gas production by the state-run Bangladesh Gas Fields Company, Sylhet Gas Fields Company and Bangladesh Petroleum Exploration and Production Company has dropped substantially during the last two years as they failed to find new fields.
"The past governments also did not pay proper gas prices to the state-run gas and oil companies," another official said.
"Petrobangla was compelled to buy more gas from the IOCs to meet the growing demands," Jalal told Reuters.
Petrobangla officials said it was incurring a loss of about $12 million a month through purchasing gas from IOCs at a higher price than that paid by consumers.
Petrobangla purchases gas from domestic firms at between 7 and 25 taka per unit or 1,000 cubic feet, compared with 130 taka from the international firms.
The government will invest an extra $465 million in the Bangladesh Petroleum Exploration and Production Company and increase the price it receives for its gas to give it more cash to explore for new fields, officials said last month.
