Comparison of some Asian offshore production sharing contracts with respect to Bangladesh

Abstract

Model production sharing contract (MPSC)-200S has been formulaled with a view to meeting the present and future energy demand. The comparative study of MPSC. 2008 wilh some regional countries would answer some of the queslions recently. In Bangladesh, natural gas is the only significam source of commercial energy, and accounts for almost 75% of total commercial energy consumption. Current gas supply capacity is 1,950 mmcfd, whereas demand is about 2200 mmelu. There is large gap between demand and supply in Bangladesh and it is increasing everyday. Thc country has no alternative but to explore new gas fields to overcome the gas shortage that has already started. Bangladesh has explored some major gas fields in onshore but the offshore is unexplored yet. For unintenupted ga.>supply to Ihe existing enstomers and to meet the anticipated demand, the model PSC-200g has been formulated. To ensure the accountability, lransparency and public participation in decision making process, the Government of Bangladesh published the comract document through \\'ebsite at an early time. Th~re are some confusion regarding this comraCl for which a thorongh comparative study lS reqnired. In addition, an overall review was required to understand and evaluate the pros and COilS of th~ contract and to verify whether the people's interest is properly reserved or not. Based on different aspects the Contract has been compared and examined. To do this comparison some regional countries like India, MaiaYSla, Pakistan, Vietnam, Turkmeni<;lun and Trinidad & Tobago are chosen. All the countries except Trinidad & Tobago are regional countIies. The reason for selecting Trinidad & Tobago is that it is also a developing country like Bangladesh but it is near to USA and has a large pelroleum market. In conclusion, the overall contract was found to be balanced and very much comparable to the regional eOllnlries. Moreover, it has conceived important improvement as compared 10 Model PSC-1997 and other signed blocks by accommodating the experience of these comracts.