The cost of taking the rig to a distance of few kilometers is 42 lakh dollars
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The cost of taking the rig to a distance of few kilometers is 42 lakh dollars
For Gazprom there has been a precedent of adding odd sectors to the formal DPP (Development Project Proposal) to increase costs. Millions of dollars were given to sectors that had no reality.
An allocation of 4.25 million dollars has been earmarked for rig mobilization in new well drilling projects (Tobgi, Bhola North-2 and Ilisha) while rigs are existing at Bhola. Bapex's letter attests to the fact that the rig was then stationed at Bhola. After drilling the Bhola North well in 2017, Gazprom left the rig at Bapex's yard. Bapex, which did not move the rig, wrote to Gazprom demanding yard rent. Far from collecting yard rent, at the same time unusual allocations were made to DPP for drilling of Tobgi, Bhola North-2 and Elisha wells.
After all is known, the mobilization cost is estimated at 4.25 million dollars just to cover the higher costs. That cost is added to the DPP to take only a few kilometers away. The Awami League government gave work to Gazprom only in that project and in other projects as well, ignoring all the rules and regulations.
Generally the DPP is finalized considering the type of work of a project and cost of procurement of goods. But in the case of Gazprom, the formal DPP is as per how much to pay. In the case of drilling of wells awarded to Gazprom without a tender, the price was determined by the Ministry. Later, according to that, it was found that each well was paid more than Tk. 100 to Tk.130 crore. And all sectors are shown to match the cost figure.
There is a demand to scrutinize all contracts executed with Gazprom in a special law without tenders. A syndicate has stolen tens of thousands of crores of money from the country in the bids given at high prices. Stakeholders have requested the contract review committee under special law to unmask those involved in looting.
According to BAPEX sources, not only the rig mobilization sector but also many other issues have been committed in the Tobgi, Bhola North-2 and Elisha well drilling projects. Compared to the previous wells, the depth of those three wells in Bhola is less but the price is much higher. Gazprom drilled well #3 and well #4 at Shahbazpur. Their depth was 4 thousand meters (MD). And Tubgi, Bhola North-2 and Ilisha had depths of plus-minus 3450 meters. Although the depth has decreased by about 500 meters, the price has increased abnormally.
During the regime of Awami League, the issue of giving work to Gazprom at higher rates was an open secret. Tk. 220 crore have been given to Gazprom for drilling the same wells that the state company Bapex can dig for Tk. 70 to Tk. 80 crores. In this way, tens of thousands of crores of money have been distributed to the state for digging 19 wells.
Energy experts said what has happened in well drilling can be called ocean robbery. Gazprom billed up to three times without tender. Thousands of crores of money would have been saved if competitive bidding was ensured.
And the work that can be done by the state company Bapex should be paid to the contractor at a high price, the energy expert Badrul Imam. He told Barta24.com that it is unfair to give foreign companies where BAPEX is able to work. I don't see any justification in giving Bapex wells to Gazprom. There should be an investigation as to why it had to be done by a foreign company.
In 2010, the government enacted the 'Provision of Rapid Supply of Electricity and Energy (Special Act) Act' to deal with the power and energy crisis. Initially, the Act was made for two years, but the period was extended from time to time. Section 9 of the Act states, 'No question shall be raised before any court about the validity of any Act, any action taken, any order or instruction given or deemed to be done under this Act.'
A total of 19 wells were awarded to Gazprom using a special law. The same well which state company Bapex can do for Tk. 70 to Tk. 80 crore, has been given for Tk. 2000 crore. While Gazprom was paid Tk. 200 crore per well, at that time Bapex Rupganj (year 2015) dug a well at a cost of Tk. 61 crore. The estimated price in the DPP of that project was Tk. 97 crore, Bapex completed the work at Tk. 61 crore and returned the remaining amount. Shrakail East-1 and Salda North-1 (year 2016) two wells have spent Tk. 144 crores. The cost per well is Tk. 72 crore.
Gazprom's commission receivers try to put forward different arguments. On their part, it is said that because Bapex used its own rig, it did not have to rent the rig, so the cost is less. If rig rent is added, the rate offered to Gazprom is nowhere near that. The ideal time to drill a well is considered to be 45 days (though completed in 30 days) as the rig (Rent 20 thousand dollars/Tk. 120 per day) costs around Tk. 10 crore. In other words, it stands at Tk. 82 crore.
With these figures in hand, contracts were awarded for 62 million dollars to drill the Tobgi, Bhola North-2 and Elisha wells which in Bangla Taka was about Tk. 200 crore. At different times, 19 wells were awarded to Gazprom at several times higher rates. Another 15 well proposals were near finalization. The most advanced was Bapex's 5-well drilling project at Bhola gasfield.
Another meeting of the Cabinet Committee on Procurement would be finalized. In the anti-discrimination movement, the Awami League government was defeated and the nation was saved from waste. Fawzul Kabir Khan, Adviser on Power, Energy and Mineral Resources of the Interim Government, took responsibility and suspended the project under special law. Although these domestic agents of Gazprom did not give up yet, they continued to lobby in various ways.
Gazprom has set a rare example of corruption and looting by using the opportunity of closeness with the Awami League government. Bangladeshi agents of Gazprom turned into monsters day by day. Due to their pressure, the BAPEX of the state institution has become a life-threatening situation. The rush to award bore well work under special laws without tendering was eye-watering.
Bangladesh was going to sign a contract for the proposed 15 wells at a rate of 23 million dollars (Tk. 120) for around Tk. 4200 crore. Those works can be done with BAPEX for a maximum of Tk.1200 crore. The precedents of which exist within the country, yet the work has been consistently given high rates with a blind eye.
Energy experts said there are precedents that are simultaneously dire. However, the Tawfiq- e-Ilahi Chowdhury syndicate has done that terrible work. In 2014, BAPEX's 354th board meeting approved the proposal to drill Srikail-4 well. In the 556th board meeting, DPP (Project Development Proposal) worth Tk.64 crore was approved. Approved DPP sends to Petrobangla. The rule is that the work will be started subject to the approval of Petrobangla.
But Petrobangla was ordered to send DPP of Tk. 200 crore without sanctioning DPP of Tk. 64 crore. A DPP of Tk. 200 crores is forced for the same work (same depth). And that work was given to Gazprom.
Behind this, the chairman of the National Group, Abdus Sattar Mia (Mia Sattar), a Bangladeshi expatriate in Russia, is shaking a stick. Mysterious man Mia Sattar was once Russia's ambassador to Bangladesh. Awami League did whatever it wanted because it was closeness. Despite many controversies, his misdeeds did not stop.
Mia Sattar played an active role in building public opinion in favor of Awami League during the last parliamentary elections. Formed "Bangladesh Friendship Society" in Russia and organized various meetings and seminars. Allegations of interference in Bangladesh were raised against America from these seminars. He played a key role behind the scenes in all those events. As a reward, Awami League was going to pay 15 more wells at a high rate after the election. After the fall of Awami League, Mia Sattar is trying to turn the tide.
When several officials of Gazprom's Bangladesh office were contacted by phone, they refused to comment. An official told Barta 24.com on the condition of anonymity, "I joined recently, the issue of rig mobilization predates my joining, so I am not aware of it."
There are 9 wells in Bhola district, from which about 200 million cubic feet of gas can be extracted. There is no demand for gas, and as there is no pipeline to bring it to the mainland, only 60 million cubic feet of gas is being extracted daily. Since 2017, a few wells have been lying idle, and those concerned have raised the question that they are taking the 5 well drilling project under the speedy supply law. Many have claimed that this project has been prepared for the Russian company Gazprom and not in the interest of the country. Objections were also raised when Gazprom had to dig Tobgi and Bhola North (seated wells). It was then said that there is no use in digging these wells now. Two wells were then drilled at an unusually high rate despite such objections from the concerned parties.
Cab's energy advisor Professor Shamsul Alam told Barta24.com that the issue of Bhola well drilling is not related to Bangladesh's energy needs. Just as Niko was given the task of profit-loss to particular individuals, so it is here. Here the Special Power Act is being used as a shield. Nowhere in the world can you find examples of anarchy where a job worth Tk. 10 is being paid for Tk.100. All the wrongdoings done to give Gazprom work are criminal offences; they should be prosecuted under criminal law
