Sylhet gas co defends rejection of Gazprom affiliate’s tender deadline

Sylhet Gas Fields Limited (SGFL) has rejected Eriell’s, a Gazprom affiliate, time extension appeal for tender submission to get a turnkey contract in an exploratory drilling project.

SGFL in a letter issued to the project’s Proposal Processing Committee (PPC) on March 9, detailed its reasons for not considering Eriell’s request.

The letter comes following a PPC meeting held on March 2 to approve the hiring of a turnkey contractor for drilling operations.

At the meeting, PPC asked SGFL to explain why Eriell’s request for a time extension was not considered.

Time was extended once before under Eriell’s request, Mizanur Rahman, managing director, SGFL, told the Business Insider Bangladesh.

“Then again, just two days before floating the tender, they (Eriell) asked for another extension of one and half months,” he informed. 

Eriell’s request was unattainable because the project would be implemented under special provisions to rapidly increase power and energy supply.

However, the final decision to select a contracting company will come from the PPC, Rahman said.

Earlier in October last year, SGFL decided to undertake a drilling project at Sylhet-10 exploration well under the Quick Enhancement of Electricity and Energy Supply (Special Provision) Act 2010, the explanation letter informed.

On November 7 last year, the project’s tender specifics were sent through BAPEX to Sinopec International Petroleum Service Corporation, China and Eriell, Gazprom Affiliate, Gazprom EP International Investment BV, Netherlands.

According to the tender documents, the date for submission and opening of the tender was December 21, 2021.

Before that, a pre-tender meeting was also held on December 6 where it was decided to extend the tender opening submission date to January 4 under Sinopec’s request.

However, Eriell-Gazprom didn’t participate in the meeting, rather on January 2 requested a 42-day extension.

This request could not be entertained due to the urgency of the projects.

Later, on the day of the deadline on January 4, the tender evaluation sub-committee received the tender bid from Sinopec but not from Eriell-Gazprom.

The total cost of the project is estimated at Tk 202.14 crore. Of this, Tk 151.60 crore will be spent from Gas Development Fund (GDF) and the remaining Tk 50.54 crore from SGFL’s own funds.

The project, scheduled for completion in December 2023, will supply about 10 mmcfd of gas per day to the national grid.

Russian energy giant Gazprom EP International BV does not operate directly in Bangladesh — it operates through third parties. Eriell serves as the third party to Gazprom in Bangladesh.

Eriell has already drilled three wells at Srikail-3, Semutang and Begumganj on behalf of Gazprom International. Eriell is also working in Shahbazpur and Rashidpur.