Petrobangla, Luxon Global signs MoU

Dhaka: State-run Petrobangla and a ‘dubious’ South Korean consortium, Luxon Global, signed a memorandum of understanding for conducting joint study in finding out areas of cooperation in energy sector.

The agreement is a follow-up of another MoU struck between the governments of Bangladesh and South Korea as an outcome of intense lobbying by Luxon and a quarter within the interim administration, Petrobangla officials said.

The two governments had signed the MoU on November 15, 2007 for one year to strengthen mutual cooperation in the energy and mineral resources sectors, they said.

Petrobangla sources said Luxon was dubious as they had earlier tried to contact the company in Korea, but failed to get any response.

Besides, the same consortium had signed a MoU with the Board of Investment on July 7, 2005, claiming that it would invest $1billion in developing energy sector, but no investment by the said consortium is yet visible, they added.

When the government signed the MoU with South Korea in November 2007, Luxon claimed that it would invest $5billion.

Petrobangla chairman Jalal Ahmed and Luxon chairman Seung Youb Lee signed Tuesday’s MoU at the Petrobangla headquarters in Dhaka.

Luxon claims to be the designated representative of the consortium comprising five companies Korean Electric Power Corporation, Korean Resources Corporation, Daewoo International, POSCO and Luxon Global. The consortium wants to develop the Dighipara coal field.

The company officials claimed that they wanted to invest $7billion in Bangladesh under the MoU to develop coal field, install power plant and in liquefied natural gas.

Jalal said that they signed the MoU as continuation of the government’s MoU with South Korea to strengthen energy cooperation.

Asked whether Luxon was dubious, Jalal said, ‘It cannot be said that it is dubious as the Koran government is behind the consortium. Besides, companies like Kepco and Posco are also in the consortium.’

He, however, said Petrobangla had made no commitment other than a study in the MoU. ‘It is a non-committal MoU. We will explore what cooperation both sides can give. It is for sure that whatever we do, we will follow the existing rules and regulations of the country.’

Regarding the planned $7billion investment, Jalal said, ‘Nothing has been included in the MoU in this regard. The MoU is for energy cooperation. They also want to install power plant. Petrobangla does not deal power plant issue.’