Archive for February 6th, 2010

Behind gas crisis of Bangladesh

Saturday, February 6th, 2010

The country would not have faced any gas crisis now if the government paid a little attention to capacity building and modernising the companies under Petrobangla instead of becoming over-dependent on foreign oil companies to produce gas, experts say.

“International oil companies (IOCs) with fewer gas reserves are producing much higher volume of gas because they have installed bigger production wells. They have done so because they have detailed information about their gas fields,” said a senior official of Petrobangla.

“In contrast, the wells of the big national companies like Bangladesh Gas Fields Company Ltd (BGFCL) or Sylhet Gas Field Ltd (SGFL) are old and much narrower.

They never modernised their gas fields to increase production capacity, neither did they try to gather detailed information about the gas fields’ health,” he added.

This has not happened because the government did not have fund to run the national gas companies.

On the contrary, Petrobangla and its affiliates have been earning thousands of crore taka each year — all of which goes to the national exchequer and for payment for gas produced by foreign oil companies.

Until recently, Bangladeshi companies possessed 78 percent of proven gas and foreign companies only 22 percent.

In terms of reserve this means, national oil companies had 5.38 trillion cubic feet (TCF) gas and foreign companies 1.53 TCF.

This estimate has drastically changed after Chevron submitted two studies on its Bibiyana gas field’s reserve.

The Bibiyana field was initially estimated to have 2.4 TCF recoverable gas (with 952 billion cubic feet proven reserve).

Following studies and reassessment, Petrobangla recently increased its recoverable reserve to 5.76 TCF with its proved and probable reserve estimated at 7.43 TCF.

This is important because this bigger reserve allows higher gas production from the Bibiyana field, which is now pumping more than 650 million cubic feet of gas a day into the national grid.

“This shows the importance of having information about gas fields,” said a Petrobangla official.

“For example, our Titas gas field has all the signs of being even bigger a gas field than Bibiyana.”

As per latest official estimation, total recoverable gas at Titas gas field is 4.740 TCF, of which 65 percent has been already recovered.

This field is currently producing around 400 million cubic feet of gas a day.

All 15 wells of this field use 3.5 inch casings to extract gas. Whereas, the wells of Bibiyana are installed with 5 to 6 inch casings. Therefore Bibiyana can produce more gas from each well.

Experts say, this production level can be increased as they believed that the field’s actual recoverable reserve would be much higher and a new study is required to understand this gas field’s actual health.

Although the Titas field is producing gas since 1968, gas flow pressure from most of its 15 wells hovers around 2,700 to 2,800 pressure per square inch (psi). Normally, gas from a new well flows at 3000 psi.

If the gas pressure falls below 2,200 psi, installing a bigger casing would not increase gas production.

“There is no alternative for us but to conduct a three dimensional seismic survey in the Titas field. If they find a bigger reserve, we can think about 5-inch tubing. Times have changed and we need more gas,” said an expert.

The gas demand in 2012-13 would rise between 2,500 million cubic feet of gas a day and 2,873 million cubic feet of gas a day and in 2014-15 between 2,669 million cubic feet of gas a day and 3,087 million cubic feet of gas a day.

To meet such demands, the country has no option but to involve oil companies for offshore exploration and increase onshore activities as well as tap other resources or import energy.

But this does not mean that the national gas companies would not be geared up for more exploration and production, experts opine.

Financial implications of over-dependence on oil companies

Petrobangla’s companies have earned during 2008-09 around Tk 5,400 crore from the sale of gas, condensate, coal and hard rock and bear an expenditure of around Tk 3,500 crore without paying the oil companies their bills.

A chunk of this expenditure is paying the government Tk 1,500 crore as Vat and supplementary duty.

Petrobangla already has a cumulative loss of Tk 1,300 crore due to purchase of costly gas from oil companies.

On the other hand, the foreign oil companies are taking around $40 million as monthly payment and tax benefits from Petrobangla for their gas sales.

This totals an annual bill of around $480 million or more than Tk 3,300 crore.

This payment will gradually increase, putting pressure on the national exchequer, unless the national companies themselves boost their production.

The Petrobangla has also been receiving millions of dollars from the oil companies under Production Sharing Contracts (PSCs) for its own capacity development. But these funds have largely remained unutilised.

Right now, there is a gas supply shortfall of around 400 million cubic feet per day, causing severe gas crisis across the country and affecting not just power generation or industrial production but also household use of gas for cooking.

Amar Ekushey Boi Mela 2010 : Update 7/2

Saturday, February 6th, 2010

7/2/2010 :
Boi Mela get the beauty of rush crowd and All publishers excepting some NGO and research-based publishers were happy with the sales of their books on the sixth day of the Amar Ekushey Boi Mela yesterday.

Many visitors were seen leaving the fair premises with a number of new books in their hands on the second consecutive holiday of the week.

It was quite hard to get inside the fair premises in the afternoon as the fair ground was brimming over with booklovers. The stalls, especially Anwesha, Anyaprakash, Bishwa Sahitya Kendra, Sahitya Prokash and the sales centre of Bangla Academy remained crowded throughout the day.

However, Sohrab, an attendant of a bookstall of the NGO, D Net, expressed his discontent over the sales of their books saying, “We could not sell much as most visitors mainly come to buy novels, but NGO publications are mainly based on research.”

Book unveiling ceremony, cultural and discussion programmes on different issues were also on at the fair.

Children were seen with their guardians in the fair seeking books of their interest. The collection of titles for children included those on comic characters, fairy tales, etc. and science fictions. Some publishers also released videos on animated versions of the fairy tales along with books.

The fair information centre reported 160 new titles.

The titles that came out yesterday include Neuron a Abaro Onuron of Muhammad Jafar Iqbal, Kata Janapad Kata Itihas of Brig General [Ret] S Shakhawat Hossain, Ayesha Mangal of Anisul Haque, Hantarak of Sawkat Osman, and Nirbachita Column of Obaidul Qader.

The fair remains open from 3:00pm to 9:00pm six days a week while it’s open from11:00am to 10:00pm on Friday with a two-hour break at 1:00pm.

The fair has two gates for entrance and exit, one in front of Atomic Energy Commission and the other one near Doel Chattar
6/2/2010
The Amar Ekushey Boi Mela drew a large crowd yesterday, the first weekend after the fair began, and it saw high sale of books.

A large number of children and youths visited the fair yesterday. On an average, five out of every 10 visitors standing in the long queues at the entrances to the fair were young people and children.

Children with their parents started thronging the fair since the gates were opened at 11:00am. In the evening, long queues were seen in front of stalls, which had new novels of popular writers.

At least 235 new books, the highest so far in one day, covering a wide range of genres, including novels, poetry, essays, research texts, biographies, and accounts of the Liberation War arrived at the fair yesterday and most of the stalls witnessed good sale.

Visitors, especially children and young people, were seen busy taking autographs of writers and poets who were on the fair premises. A good crowd was also seen at the writers’ corner.

In the afternoon, dust kicked up by the huge crowd created some difficulties for the visitors.

Parents, however, expressed dissatisfaction over the poor variety and number of children’s books available at the fair. “Most of the books are based on cartoons and foreign stories. I have not found many that reflect the culture of Bangladesh,” said Mannan, who came with his seven-year-old daughter.

The stalls with thrillers caught the eyes of older children.

The new books include Dhakay Prothom and Deep Dipantor by Muntasir Mamun, Agun Koylay Pora Jibon by Mohith Kamal, Chironjib Sheikh Mujib translated by Kabir Chowdhury, Lilian Upakkhayan and Tumi Amar by Imdadul Haq Milon, Nirbachito Hashir Golpo by Anisul Huq, The Age of Iron translated by Kabir Chowdhury, Rakhhash Kokkhosh o Bhokkhok, Protidiner Ain Somporke by advocate Elina Khan and Jaloz: Biggan Kolpokahani.

Diary :Union Information Centre (UIC)

Saturday, February 6th, 2010

Encouraged by the tremendous success in 30 unions, the UNDP-supported Access to Information (A2I) Programme, is helping the government to expand Information and Communications Technology (ICT) facilities to 1,000 more unions across the country.

“We are really encouraged by the success of setting up information centres in 30 unions. Now we have decided to setting up the centre in 1,000 more unions to reach the information technology (IT) facility to the doorsteps of common people of the country,” said Adviser to the Prime Minister on Establishment and Administration, Mr. HT Imam, while inaugurating a Union Information Centre (UIC) at Sirajganj, Bangladesh.

UNDP has been providing financial as well as technical assistance in setting up the UICs.

Mr. Imam said that under this programme, laptop computers have been provided to the Deputy Commissioners and the Upazila Nirbahi Officers (UNOs) will be provided soon.

Through these UICs, a huge number of people will have access to both offline and online facilities such as different government forms, and information about agriculture, health, education, legal aid, human rights and employment.

As well as this, services like writing, printing, photo scanning, e- mail, internet browsing and multimedia projection will be provided to rural people at a nominal cost.

Earlier, people of the unions had to go to upazila headquarters for such information and different government forms like passport and driving license but they can now collect those from the UICs.

Digital Bangladesh in Action: BASIS SoftExpo 2010 from10th Feb.

Saturday, February 6th, 2010

The five-day SOFTEXPO-2010 will be kicked off on Feb 10 at the Bangabandhu International Conference Centre (BICC) in the city. Bangladesh Association of Software and Information Services (BASIS), the lone organization to promote the country’s booming software industry, is organizing the biggest software exposition with the theme of “Digital Bangladesh in Action”.
BASIS is expecting more than 200 exhibitors from home and abroad to participate at this mega exposition. The targeted exhibitors include multinational software vendors and ICT companies, international ICT associations, local software development companies, successful ICT projects initiated by multinational and local companies, govt. departments and agencies implementing e-Governance projects, ICT training institutes and universities among others. The number of projected visitors in BASIS SoftExpo 2010 is expected to be around 200,000 which will include CEO/MD/ CTO/CIOs from the corporate world, government decision makers, academia, business leaders, print and electronic media personnel, ICT professionals, ICT users from all over the country and abroad, students and citizens from cross sections of the society. Apart from showcasing of products and services by the exhibitors, a series of workshops and seminars will also be organized during the expo on various issues

BASIS SoftExpo- the annual mega exposition of the country’s software and Information Technology, is poised to become a major IT event of the South Asian region within a few years, organizers of the event said Saturday.

“The yearly expo has expanded its range and capacity over the decade and now attracting a number of participants from abroad regularly”, President of Bangladesh Association of Software and Information Services (BASIS) Habibullah N Karim said at a press conference in the city.

“Although, the main focus of this software exposition is the promotion of our homegrown companies to the local market, our aim is to turn it into a major regional IT event after hosting two or three more such occasions”, he added.

The remark came days before the upcoming BASIS SoftExpo 2010 which would take place in the city’s Bangabandhu International Conference Center from the next Wednesday (February 10).

.Speaking on the occasion, MA Mubin said they have given special emphasis on ‘Vision-2021′ aimed at supplementing the government’s efforts of turning Bangladesh into a digital country within the stipulated time.

Over 200 local and international companies with around five lakh visitors are expected to participate in the SOFTEXPO, he said adding that the event will create a wide scope for interaction among software providers, buyers, IT users, professionals, media, policy makers, development partners, students and the society people.

Finance Minister AMA Muhith is expected to inaugurate the event, the BASIS authority said, while Commerce Minister Faruk Khan and State Minister for Science and ICT Yeafesh Osman would also be present at the opening ceremony.

Highlighting the growth potential of software and ITES in Bangladesh, Habibullah Karim said, “The market size of the country’s software industry which is currently Tk. 10 billion is set to grow to almost Tk. 50 billion within the next three to four years”.

“At the same time, the export from software and ITES which is presently amounted to US$ 33 million, could reach US$ 500 million within five years”, he added.

This year’s SoftExpo would have special focus on attracting top level executives like chief executive officers, chief financial officers and chief technical officers from various local and multinational companies, the organizers said. The theme of the expo for this year is “Digital Bangladesh in Action”.

“IT and telecommunication industry is quintessentially integrated with each other as the mobile handsets have to use a range of software for their value added services and other applications”, said Mamun Hashmee, Additional General Manager of Grameenphone, platinum sponsor of the event.

“The market for cell phones’ value added services in Bangladesh currently amounts to Tk. 500 million, most of which is shared by the local software companies and it is poised to grow into Tk. 3 billion within five years”, he added.

M Rezaul Hasan, Chief Executive Officer of Reve System, the gold sponsor of the event and Mubin Khan, Director of BASIS also spoke on the occasion.

The price of the entry ticket for this year’s expo is Tk. 20.00. However, students will be able to enter the fair venue free of cost from 10 am to 5 pm and tickets can also be bought through mobile SMS from any Grameenphone number.

Search Software

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? http://www.softexpo.com.bd/online_exhibition.php

French cement giant Lafarge’s plant in Bangladesh may in trouble

Saturday, February 6th, 2010

French cement giant Lafarge’s $255 million cement plant in Bangladesh may run into rough weather, with the Supreme Court on Friday turning off the supply of raw material by temoprarily suspending mining operations in eco-sensitive forest areas of Meghalaya.

The order completely stopping mining in East Khasi Hill district till March 19 came with a sense of outrage from the Forest Bench comprising Chief Justice K G Balakrishnan and Justices S H Kapadia and Aftab Alam.

It took strong exception to tribal land being allegedly transferred in violation of rules to the French company’s subsidiary which mortgaged it to raise a loan of $153 million from a host of foreign banks.

Appearing for Shella Action Committee, a forum of villagers in Shella, senior advocate P S Narasimha pointed out that not only was the land, falling under Schedule VI of Constitution banning its transfer to non-tribals, illegally taken over in collusion with local officials, but the mining was started without the mandatory clearance from the ministry of environment and forest (MoEF) under the Forest Conservation Act (FCA).

Illegally depriving the scheduled tribes of their land, the same was mortgaged to a host of multi-lateral agencies and foreign banks — Asian Development Bank, International Finance Corporation, Deustche Investetionaud Ent, European Investment Bank, The Arab Bangladesh Bank and the Standard Chartered Bank, Bangladesh, for obtaining a loan of $153 million, Narasimha said.

Amicus curiae Harish Salve and A D N Rao said not only was the eco-fragile area opened up without the mandatory forest clearance, the raw material was being sent to Bangladesh at cost price depriving India of huge revenue due from custons and other duties.

Additional solicitor general Harin Raval, appearing for MoEF, said that the ministry had clearly issued an order in May 2007 staying the mining operations, but the SC had allowed it to go on.

The Bench asked the French company to give details of its operation and the manner it started mining even as its counsel Mukul Rohtagi and Abhishek Manu Singhvi tried to soften the blow by offering to price the raw material at market price. But, the Bench sought a detailed response and posted the matter for further hearing on March 19. However, it allowed it to lift the already mined limestone from the site for export, but with prior intimation to the Central Empowered Committee (CEC) about the quantity of the mineral.

Lafarge Umuiam Mining Pvt Ltd (LUMPL) was mining the limestone quarry area spread over 100 hectares near the Indo-Bangladesh border for supply of raw material to Lafarge Surma Cement Project at Chhatak in Sunamganj, Bangaldesh.

Lafarge and Spanish cement producer Cementos Mollins had set up the state-of-the-art fully integrated cement plant at Chhatak with a captive power plant of 300 MW. In 2001, the Bangladesh high commissioner and then Indian foreign secretary Lalit Mansingh had singed an agreement for uninterrupted supply of raw material to the plant from the mines in Meghalaya.

After this agreement, Lafarge had claimed to have obtained relevant clearances from MoEF, the state government, the autonomus hill council and the chief conservator of forest for limestone quarrying in East Khasi Hills.
French cement giant Lafarge’s $255 million cement plant in Bangladesh may run into rough weather, with the Supreme Court on Friday
turning off the supply of raw material by temoprarily suspending mining operations in eco-sensitive forest areas of Meghalaya.

The order completely stopping mining in East Khasi Hill district till March 19 came with a sense of outrage from the Forest Bench comprising Chief Justice K G Balakrishnan and Justices S H Kapadia and Aftab Alam.

It took strong exception to tribal land being allegedly transferred in violation of rules to the French company’s subsidiary which mortgaged it to raise a loan of $153 million from a host of foreign banks.

Appearing for Shella Action Committee, a forum of villagers in Shella, senior advocate P S Narasimha pointed out that not only was the land, falling under Schedule VI of Constitution banning its transfer to non-tribals, illegally taken over in collusion with local officials, but the mining was started without the mandatory clearance from the ministry of environment and forest (MoEF) under the Forest Conservation Act (FCA).

Illegally depriving the scheduled tribes of their land, the same was mortgaged to a host of multi-lateral agencies and foreign banks — Asian Development Bank, International Finance Corporation, Deustche Investetionaud Ent, European Investment Bank, The Arab Bangladesh Bank and the Standard Chartered Bank, Bangladesh, for obtaining a loan of $153 million, Narasimha said.

Amicus curiae Harish Salve and A D N Rao said not only was the eco-fragile area opened up without the mandatory forest clearance, the raw material was being sent to Bangladesh at cost price depriving India of huge revenue due from custons and other duties.

Additional solicitor general Harin Raval, appearing for MoEF, said that the ministry had clearly issued an order in May 2007 staying the mining operations, but the SC had allowed it to go on.

The Bench asked the French company to give details of its operation and the manner it started mining even as its counsel Mukul Rohtagi and Abhishek Manu Singhvi tried to soften the blow by offering to price the raw material at market price. But, the Bench sought a detailed response and posted the matter for further hearing on March 19. However, it allowed it to lift the already mined limestone from the site for export, but with prior intimation to the Central Empowered Committee (CEC) about the quantity of the mineral.

Lafarge Umuiam Mining Pvt Ltd (LUMPL) was mining the limestone quarry area spread over 100 hectares near the Indo-Bangladesh border for supply of raw material to Lafarge Surma Cement Project at Chhatak in Sunamganj, Bangaldesh.

Lafarge and Spanish cement producer Cementos Mollins had set up the state-of-the-art fully integrated cement plant at Chhatak with a captive power plant of 300 MW. In 2001, the Bangladesh high commissioner and then Indian foreign secretary Lalit Mansingh had singed an agreement for uninterrupted supply of raw material to the plant from the mines in Meghalaya.

After this agreement, Lafarge had claimed to have obtained relevant clearances from MoEF, the state government, the autonomus hill council and the chief conservator of forest for limestone quarrying in East Khasi Hills.
Lafarge worldwide
Lafarge headquarters are located in Paris, France. The Group, present in 79 countries, orients the development of its businesses towards fast-growing markets, notably in Asia and Middle-East.