3rd August 2019
Saleque Sufi

Bangladesh between March 26, 1971 and August 15, 1975 for setting a foundation for self-reliant Bangladesh had soft, subtle blessing of Bangabandhu. His lifelong dream was exploitation-free, self-reliant country where citizens of all religions, ages, sect or creed would have free, joyful living in tranquility. The August 1975 tragedy as the major setback had made Bangladesh misdirected decades away from achieving his cherished vision. After that the dark fateful night of August 15, military autocrats and under their patronage self-confessed killers, anti-liberation forces back pedaled Bangladesh away from Bangabandhu’s vision. The basic fundamental principles of great liberation war were compromised. Corruption and anarchy got rampant. Bangladesh drifted to the edge of failed nation. Conspirators implemented their design. Between 1996 and 2001 under the Awami League-led government initiated the recovery process from near ruins. But again major damage was done between 2002 and 2006. The depth and diversity of economic down turn and social injustice were so acute that the Awami League government from 2010 to 2019 has been struggling to back track Bangladesh along the walkway of Bangabandhu’s vision.

This write up in its limited scope would concentrate on Bangabandhu’s vision of energy and power sector. We often listen about committing to Bangabandhu’s vision in all aspect of life in Bangladesh - going all out for realizing Bangabandhu’s vision. But we are not sure his doctrine of self-reliant energy sector through exploiting huge potential natural resources has been understood and appreciated at all. 

 

Why Bangabandhu created Bangladesh Oil, Gas and Mineral Corporation (BOGMC) and later bifurcated into BOGC and BMDC? What was his driving motive behind taking over five major gas fields from Anglo Dutch Company Shell BV? How did he manage taking over such valuable resources for a mere 4.5 million pound sterling paid in several installments? Why and how under his inspiration Bangladesh could go for offshore exploration of oil after only three years of liberation? Why he created BPDB and BWDB from WAPDA? All these were done to make Bangladesh self-reliant for achieving long term sustainable energy security? Deep down his heart he believed that economic exploitation of own primary fuel resource would provide backbone for achieving sustainable energy security, create industrialization, alleviate poverty and create seamless development of economy.

 

Bangabandhu created Bangladesh Oil Gas and Mineral Corporation (BOGMC), now Petrobangla, with the similar vision like PETRONAS, Malaysia and PERTAMINA, Indonesia. PETRONAS was championed by another maestro Mahathir Mohammad. Mahathir inspired PETRONAS now is one of the leading energy company in the world. We lost Bangabandhu after few years of his blessing.  Petrobangla is a shadow of its glorious past. PETRONAS is now a symbol of modern Malaysia. Bangabandhu used to call brilliant young early generation of Petrobangla as Golden Sons of the soil. Mahathir called them Bhumi Putra. Mahathir’s Bhumi Putras still contribute for PETRONAS locally and globally. After Bangabandhu killing, his golden sons mostly are no longer in Petrobangla. For abysmal performance of Petrobangla, Bangladesh failed exploiting the discovered coal reserve and exploit extensive prospects of petroleum resources in onshore and offshore.

 

Instead of own primary fuel creating backbone of sustainable energy security, Bangladesh is getting increasingly reliant on imported fuel. Substantial discovered superior quality coal remains unexplored. Gas exploration did not get required momentum. Consequently to keep economic activities going, LNG import has already started, coal import would start soon. The government for absorbing price shock of nominal 500 MMCFD RLNG had to go for major upward revision of gas price. The catch 20 situation forces Bangladesh to either account for major subsidy or go for unpopular gas price increase. Needless mentioning that price increase of gas in different sector would increase cost of power, transport, business and commerce. Relying on imported fuel would also create uncertainty for possible interruption to supply chain for regional and global geo politics.

 

Bangabandhu’s far sight in 1972 visualized these. Unfortunately advisors and sector managers could not arm Bangabandhu daughter with plans and ideas for exploiting own fuel resources. Bangladesh moved miles away from Bangabandhu envisioned path for achieving energy security. In such a delicate situation, observing August 9 as energy security day for showing respect to the dreamer and architect of Bangladesh contradicts logic and justification.

 

People who knew the sweet singing big bird intimately have every reason to get concerned as Bangladesh in energy sector is on reverse mode that Bangabandhu envisioned. The energy diplomacy of the great soul made possible taking over 5 major discovered gas fields – Titas, Bakhrabad, Habiganj, Rashidpur and Koillashtilla – from the ownership of Anglo Dutch energy giant for a nominal price of 4.5 million pound sterling. These gas fields still account for about 40% of the total gas production. While Bangabandhu in infancy of Bangladesh could dare taking over major gas fields, other rulers handed over discovered and under operation gas fields to tiny foreign companies. Those companies destroyed gas resources.

 

Bangabandhu created Bangladesh Oil, Gas and Mineral Corporation (BOGMC) and later bifurcated into BOGC and BMDC for carrying out extensive exploration and development of petroleum and mineral resources. Bangabandhu also made two of his trusted technical professionals as CEO of the two entities and gave them status of full secretary. They used to report directly to the head of the government. Petrobangla in a limited time managed to acquire the five major gas fields. These fields supplying gas at cheaper price facilitated low cost power generation, fertilizer production, created massive industrialization. These fields still account for over 40% of total gas production.

 

Formulating model PSC, Bangladesh could go for bidding and engaged six IOCs for oil exploration in the Bay of Bengal with the objective of possible impacts of Arab Israel war. Petrobangla in almost 7 years of the resolution of Maritime Boundary dispute with Myanmar could not even invite fresh PSC bidding for deep offshore.

 

In 2019 after 44 years of his demise, Bangladesh still remains confused on how to exploit discovered superior quality gas resource.

 

Petrobangla and its major company in 1970s attracted the top talents of BUET and other public universities. After 1975 the government did not take any initiative to stop major brain drain of Petrobangla, energy and power sector. The government struggled in implementation of power and energy sector mega projects for limited numbers of competent and skilled technical resources. There is genuine concern whether Bangladesh with its present manpower can efficiently operate and maintain power and energy expanded infrastructures. Petrobangla companies struggle finding out capable and competent executives.

 

It’s true that power and energy sector has expanded all over and expanding every day. But long term sustainable energy security is in a spot of bother. Bangabandhu’s vision of developing extensively own fuel resource for strengthening backbone of energy security is compromised. Bangladesh cannot survive on the slippery track of exclusive imported fuel. The sooner policy makers get back to Bangabandhu’s vision of self-reliant energy and power sector the better. There must be a well thought balanced fuel mix of own and imported fuel.

 

On August 9, 2019 Bangladesh must take fresh initiative for exploring and exploiting coal and petroleum resources to its full potential and for developing comprehensive fuel utilization plan with implantable fuel mix and pricing vision. Bangabandhu’s soul would be better respected if we can do that.

 

The bureaucrats dominated energy and power sector will soon be stuck in quick sand if Bangladesh becomes exclusively reliant on imported fuel. Prevailing and emerging global geo politics may create oil crash. Bangladesh cannot absorb price shock. Moreover, geo politics may lead to disruption of fuel supply chain.

 

Saleque Sufi;

Contributing Editor, EP

  


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