Oil firms win Bangladesh rights

Bangladesh has granted Conoco Phillips of the US and Ireland's Tullow Oil three offshore exploration blocks in disputed waters in the Bay of Bengal. The firms have been given the right to explore for gas, despite ownership claims on some of the territory by neighbouring India and Burma. The oil firms will spend $160.5m (£98m) on exploring the area. The offshore bidding round was introduced last year by the then army-backed interim government. Consumption rate "The government approved the leasing out of two deep-water offshore gas blocks to Conoco Phillips and one shallow water block to Tullow for oil and gas exploration in the untapped areas of the Bay of Bengal," said Mohammad Muqtadir Ali, of state-run Bangladesh Oil, Gas and Mineral Corporation. The results of the exploration by the two firms should come within five years. "The government is not in favour of awarding more than two blocks to a single company," Mr Ali added. The decision on awarding the gas blocks was made by the elected government, which came to power in a late-2008 election. Award of the gas exploration contracts has been made after it was estimated that the country's current gas reserves would run out by 2014-2015 at the present consumption rate.