The Bangladesh Government has cancelled a memorandum of understanding signed with Petronas Gas Bhd and Tullow Oil for a seismic survey and gas exploration. "We have cancelled the MOU signed with the two companies three years ago as they could not come up yet with any exploration program," State Minister for Energy and Mineral Resources A.K.M. Mosharraf Hossain said.
He said instead, state-owned petroleum exploration company, BAPEX, would hold a seismic study and exploration at gas block 11 in northern Sherpur district, about 100 km from the capital, Dhaka. The production sharing contract was for a 40-percent stake each for the two foreign companies in the block while the remaining 20 percent was to be held by BAPEX. "As the companies could not fulfill the criteria and failed to produce any program, we have decided to award the job to BAPEX," Hossain said.