Saturday, September 16 2006 13:14 Hrs (IST) - World Time -

Dhaka: Bangladesh and Thailand are planning cooperation in the energy exploration sector, covering a vast region from the eastern flank of South Asia to Southeast Asia.

Dhaka and Bangkok signed a memorandum of understanding on conducting a joint study for hydrocarbon exploration in the Bay of Bengal and development of human resources in the energy sector, New Age newspaper said.

It was decided that there would be a study report before any joint move is finalised. Since elections are due in Bangladesh and Thailand, both are leaving further action on the report for the governments that would assume office after the elections.

While Bangladesh is keen on joint exploration in off-shore oil and gas drilling in the Bay of Bengal, Thailand wants Dhaka to participate in joint exploration of hydrocarbon in Thailand and other Southeast Asian countries including Myanmar, Laos, Vietnam and Cambodia.

To facilitate a move forward, a joint working group of Petrobangla, the state sector venture of Bangladesh, and PTT Exploration and Production Public Company Ltd of Thailand (PTTEP) will be formed, it was announced here at the end of a brief visit by Thai Energy Minister Viset Choopiban.

Petrobangla chairman Mosharraf Hossain Bhuiyan, and PTTEP president Maroot Mrigadat signed the MoU.

Petrobangla has expertise in developing onshore gas-fields whereas the PTTEP has expertise in offshore gas-fields, Choppiban said.

"So both the corporations can exchange knowledge and work together in both the countries. They can also work in other countries jointly," he said.

The PTTEP has evinced interest in forming a joint venture for hydrocarbon exploration in three offshore blocks - 18A, 19A and 19B.

The Thai company proposed that it would be the owner of 70 percent of the blocks and Petrobangla would get 30 percent ownership. This sort of a deal, the newspaper pointed out, has not been perceived as favourable by many energy experts.

Bangladesh's Energy Advisor Mahmudur Rahman, however, said that no specific blocks were included in the MoU and the sharing formula is yet to be worked out.