Offshore blocks offered in Bangladesh’s Bay
of Bengal have attracted a disappointing level of interest from
license-holders; however, anticipated improvements to the terms governing the
country’s oil and gas industry could entice investors.
According to the company’s latest report*,
only one extra bid is thought to have been received for the shallow-water
blocks during the extension of Bangladesh’s 2012 bidding round, adding to the
three already received. As a result, more attractive fiscal terms are likely to
be implemented in upcoming rounds, although the next one is unlikely to
commence until 2015.
The fiscal terms for Bangladesh’s deepwater
blocks were amended significantly, with a number of new incentives, mid-round
in 2013; however, no such improvements were applied to the terms for the
shallow-water area, despite
increasing demand for natural gas.
Jonathan Lacouture, Lead Analyst for the
Asia-Pacific region, cites this lack of incentives as a reason for the low
number of bids.
“Bangladesh faces fierce competition from
India and Myanmar for exploration investment in the Bay of Bengal,” says the
analyst. “Incentives are needed to make the Bangladeshi blocks stand out,
especially considering the substantial turnout which Myanmar recently
experienced in its own licensing round.”
Indeed, Bangladesh’s upstream oil and gas
sector is further clouded by ongoing uncertainty over the status of certain
blocks in the shallow-water area. Following a clash with Myanmar over maritime
boundaries, a similar dispute with India now remains unresolved, and
arbitration on this dispute is not expected until June 2014.
Lacouture continues: “If the ruling on this
issue favors India, then it would threaten the integrity of the six offshore
blocks on the western edge of the exclusive economic zone, which are currently
claimed by Bangladesh. This arbitration means that the next bidding round will
probably not happen until 2015 and the delay will only increase authorities’
urgency to attract investors.”
Will Scargill, Fiscal Analyst, suggests that
future incentives are most likely to be offered through either a higher-cost
recovery limit, or an improved gas-pricing framework.
He says: “Given the level of domestic demand,
export provisions are unlikely to be offered. The 2008 model contract permitted
exports, and it was precisely for this reason that there was a lot of political
opposition to the contract.”
Scope
- Historic and forecast data relating to production, consumption, imports, exports and reserves are provided for each industry sub-segment for the period 2000-2020.
- Historical and forecast data and information for all the major gas fields, Liquified Natural Gas (LNG) - Terminals and pipelines in Bangladesh for the period 2005-2017.
- Operator and equity details for major natural gas assets in Bangladesh.
- Key information relating to market regulations, key energy assets and the key companies operating in the Bangladesh’s energy industry.
- Information on the top companies in the Bangladesh including business description, strategic analysis, and financial information.
- Product and brand updates, strategy changes, R&D projects, corporate expansions and contractions and regulatory changes.
- Key mergers and acquisitions, partnerships, private equity and venture capital investments, and IPOs.
Reasons to buy
- Gain a strong understanding of the country’s energy market.
- Facilitate market analysis and forecasting of future industry trends.
- Facilitate decision making on the basis of strong historic and forecast production, reserves and capacity data.
- Assess your competitor’s major natural gas assets and their performance.
- Analyze the latest news and financial deals in the gas sector of each country.
- Develop strategies based on the latest operational, financial, and regulatory events.
- Do deals with an understanding of how competitors are financed, and the mergers and partnerships that have shaped the market.
- Identify and analyze the strengths and weaknesses of the leading companies in the country.
Spanning
over 88 pages, 36 tables and 14 figures, “Bangladesh Gas Markets, 2013” report covering Bangladesh Energy Sector; Bangladesh Gas Upstream Investment
Environment Benchmarking; Bangladesh Exploration and Production Sector;
Bangladesh Pipeline Sector; Bangladesh LNG Sector; Profile of Chevron
Corporation; Profile of Bangladesh Oil, Gas and Mineral Corporation; Profile of
A.P. Moller - Maersk A/S; Financial Deals Landscape; Recent Developments.
Inquire
about this report: http://www.marketresearchreports.com/globaldata/bangladesh-gas-markets-2013
Find
all Natural Gas report at: http://www.marketresearchreports.com/natural-gas
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