Why spend more on foreign surveyors?

Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) is paying foreign companies three-four times more than what it would have cost its teams to conduct 3D and 2D seismic surveys to find new reserves of different fossil fuels, drawing criticisms from different quarters.

With its teams, BAPEX usually spent less than Tk 9 lakh per square kilometre for a 3D seismic survey and Tk 3-4 lakh per line km for a 2D seismic survey, and the results have so far been very good.

However, the state-run company now is paying foreign surveyors Tk 15-80 lakh and Tk 10 lakh, respectively, for the same 3D and 2D surveys.

Even though they cost more, the government is depending on these foreign companies instead of BAPEX’s own very effective 3D and 2D survey teams — which cost the state coffer much less.

Talking to The Business Post, energy experts and several BAPEX officials have alleged that some dishonest senior officials of BAPEX, Petrobangla and the Energy and Mineral Resources Division (EMRD) are behind such moves as they aim to embezzle money or get commissions by giving these projects to foreign surveyors.

These dishonest officials have also been behind the removal or transfer, over flimsy corruption allegations, or even the resignation of many BAPEX officials who protested or tried to obstruct the moves.

The Business Post has found that at least 6 highly efficient officials have left the company out of frustration while some others were transferred from BAPEX over minor corruption allegations levelled against them.

However, different investigations by Petrobangla, EMRD and the Anti-Corruption Commission (ACC) found the allegations to be untrue, several officials of BAPEX’s Geophysics Division confirmed to The Business Post on condition of anonymity.

Effectiveness

The country’s first 3D seismic survey team was formed by BAPEX in 2012 to strengthen the oil and gas exploration initiatives but it’s moving nowadays at a slow pace.

BAPEX’s geophysical teams conducted a 3D seismic survey on a 2,700 square kilometre area for the first time in the country’s history between December 2012 and November 2019. Only Tk 8.65 lakh was spent per square kilometre.

Based on this survey, the country’s 27th gas field — Bhola North — was found and opened in 2018. Several of their exploratory and well-development works have confirmed a total of 1 trillion cubic feet (Tcf) of gas reserves in the country.

However, the government has recently paid two foreign companies nearly Tk 3 crore each per square kilometre for 3D seismic surveys at Barapukuria and Dighipara coal mines.

BAPEX has also hired Chinese company Sinopec to conduct a 2D seismic survey on the Chattogram, Noakhali and Cox’s Bazar coastline. Sinopec is getting an estimated Tk 10 lakh per line km. BAPEX’s team has spent only Tk 3-4 lakh for the same survey, official data shows.

Recently, BAPEX confirmed that the Tobgi-1 exploratory well in Bhola’s Shahbazpur gas field has 239 billion cubic feet of gas reserves, which has an estimated market value of Tk 8,000 crore.

If 70 per cent of the 1 Tcf gas is extracted, its current market value would be Tk 17,000 crore, provided per MMBTU gas costs $3. However, the market value would stand at around Tk 90,000 crore if compared to the current long-term LNG purchase price ($15 per MMBTU).

Mortuza Ahmed Faruque, who was the managing director (MD) of BAPEX when the first 3D survey was conducted in 2012, told The Business Post that there are several reasons behind the high cost of foreign surveyors.

“The main cause, however, is the vested quarters, which only aim to embezzle the money or make sure they get their commissions from the foreign companies by giving them the projects,” he said. This is destroying the talented geophysics teams of BAPEX, he added.

High costs continue

According to BAPEX’s data, in 1999, a seismic survey at the Bibiyana gas field in Habiganj was conducted by a company named Grand Geophysical at a cost of Tk 26 lakh per square kilometre.

In 2002 and 2006, two different 3D surveys were conducted at Bangura by Grand Geophysical and Norwegian company PGS at a cost of Tk 19 lakh and Tk 16.5 lakh, respectively.

In 2004, PGS also surveyed the Chhatak gas field for Tk 18 lakh.

In 2008, US-based Geokinetics conducted a 3D survey at the Moulvibazar gas field and BAPEX spent Tk 60 lakh per square kilometre. In 2013, Geokinetics also surveyed Jalalabad for Tk 80 lakh.

Meanwhile, Barapukuria Coal Mining Company Limited recently conducted two 3D seismic surveys at Barapukuria and Dighipara coal mines in Dinajpur.

China’s BGP and France’s CGG were paid Tk 2.70 crore and Tk 2.85 crore, respectively, per square kilometre.

Yet another investigation

Meherul Hasan, the deputy general manager (DGM) of BAPEX’s Geophysics Division, was the director of the first-ever “3D Seismic Project” that took place between 2012 and 2019. He was transferred to the Petrobangla’s Reservoir and Data Management Division in August after allegations of corruption in the project surfaced.

The allegations against him were not proven despite investigations by the ACC and Petrobangla in 2019.

However, sources said Petrobangla has started another probe on this issue under the pressure from influential vested quarters even though it did not find any proof the first time and Meherul got a clean chit from ACC.

Reached for comment, Petrobangla Chairman Nazmul Ahsan told The Business Post, “This is a long-disputed issue. We have already investigated this but nothing was found. However, a new probe has begun to end the disputes. This time, we’ll hopefully find out and share what actually happened.”

Petrobangla General Manager (Mining) Fazlur Rahman has been made the head of the new investigation committee. Requesting anonymity, a probe team member said their investigation is nearly finished and they will submit the report soon.

It has been alleged that Meherul embezzled crores of taka by giving an outsourcing contract to Arneeb Enterprise and showing 12 months of work in a year.

“However, a 3D survey can only be done during the dry season. The 3D Seismic Project has actually taken five-six months and we have found no irregularities so far,” said the probe team member.

The project-related documents, copies of which have been obtained by The Business Post, showed that all tenders were cleared by BAPEX’s Board of Directors and the procurement committee, and signed by current MD Mohammad Ali, who was the DGM (procurement) when the 3D Seismic Project started in 2012.

Talking to The Business Post, Ali claimed that the entire project was the project director’s responsibility. “I was not aware of the project’s procurements.”