Bangladesh disputes Myanmar explorations in Bay of Bengal

Bangladesh disputes Myanmar explorations in Bay of Bengal

Guest column by Dr. Anand Kumar

The naval forces of Myanmar and Bangladesh came face to face in the Bay of Bengal recently after an oil and gas exploration attempt by Myanmar in a disputed area. Though the tension has been subsequently diffused the crisis is far from over.

The problem started on November 2 when Bangladesh noted that the South Korean Company Daewoo has started exploration work in AD-7 Block. Nearly fifty people using four ships were working in this area, escorted by two Myanmar’s naval warships. Myanmar had earlier granted rights to this company to do exploration work.

This area in Bay of Bengal is also claimed by Bangladesh. International law allows every country to have and use 200 nautical miles from its coast to the sea. However, this law gives rise to tricky situation as the coasts of India and Bangladesh and Myanmar follow a curve, which implies overlapping of territory. This has led to disagreement on their maritime border. Under the UN Convention on the Law of the Sea (UNCLOS), India and Myanmar have to delimit the border and file their claim to the UN on June 29 and May 21 next year while Bangladesh has to do it before July 27, 2011.

Both India and Myanmar have been trying to sort out their border dispute with Bangladesh for a long time. In 2004, the Bangladesh foreign ministry formed a committee with members from Petrobangla, Geological Survey of Bangladesh, the Navy, Spaarso, Inland Water Transport Authority and Surveyor of Bangladesh. The purpose of this committee was to recommend a suitable way to mark the deep-sea territory fulfilling requirements of the UN and as per the law of the sea. However, the committee became dysfunctional within a year and could not produce result expected from it.

Though some high level meetings have taken place between Myanmar and Bangladesh, so far no amicable solution has been found. Myanmar is asking for eco-distance system in East to West boundary while Bangladesh is asking to demarcate in equity basis North to South. Recently, expert delegations of Bangladesh and India also held a three-day meeting after a gap of 28 years to settle unresolved maritime boundary issues. But this talk also could not produce result and hovered around discussing boundary in South Talpatty, an island still in formation, in the Bay of Bengal. The maritime border dispute of Bangladesh with Myanmar and India has not been solved because the Bangladesh government has not given adequate attention to the problem.

During the last meeting Myanmar and Bangladesh agreed that they would not start oil and gas exploration in the disputed area. But Bangladesh has gone ahead and started exploration in area close to Chittagong.

The Bay of Bengal is supposed to be highly rich in hydrocarbon resources. It was proved by the Indian discoveries in the Krishna Godavari Basins and also by massive oil and gas finds in Myanmar. Two main basins in the Bay--Krishna-Godavari and Mahanadi --have shown a potential of nearly 18 billion barrels of oil equivalent gas in place. While official sources quote a figure of 100 trillion cubic feet of gas reserves in the region, unofficial estimates peg the reserves at 200 trillion cubic feet of gas. Myanmar had 21.19 trillion cubic feet of gas reserves, or 0.3 percent of the world's total, while Bangladesh had 13.77 trillion cubic feet, or 0.2 percent, at the end of 2007, according to BP Plc. Most of it is located in the Bay of Bengal.

Bangladesh has recently been facing shortage of gas. The country currently produces 1,750 million cubic feet of gas a day (mmcfd) and faces a shortage of nearly 200 mmcfd in its daily domestic consumption. This situation exists despite the existence of hydrocarbon in Bangladesh. Gas has been discovered in the Commilla, Sylhet and Chittagong area. Generally wherever gas is found oil is also normally present in lower strata provided certain geological conditions prevail. It is expected that the offshore area of Bangladesh may be having reserve of oil.

Early this year Bangladesh divided its sea territory into 28 blocks and auctioned off the area to international oil companies as part of its stepped-up move to end chronic gas shortages. This decision of Bangladesh was protested by both Myanmar and India who have disputes. This decision was also protested by a section of people in Bangladesh who felt that certain vested interests wanted to go ahead with exploration of oil because it was not easy to trade in gas as its liquefaction was costly.

This decision of Bangladesh has not been particularly liked by Myanmar as this resource is a major source of income for the military junta, which had earlier entered into a deal with China to sell gas. It prompted Myanmar to start exploration in the area right away without waiting for the resolution of dispute. Myanmar has discovered seven trillion cubic feet of gas in 2006 close to Bangladesh waters. Myanmar wants to continue this search further. This also led to tension between the two countries.

The initial response of Bangladesh was to send naval ships. Three naval ships of Bangladesh - BNS Abu Bakar, BNS Madhumati and BNS Nirvoy -went to the spot challenging the Myanmar’s ships but the Myanmar Navy responded by alleging that the Bangladesh Navy ships are trespassing. They also informed the Bangladesh navy that they were acting under instructions from their government.

Bangladesh knows that Myanmar is no pushover, and possibly stronger than it militarily. Hence it also started multi-pronged diplomatic effort. Bangladesh raised the issued with China, a friend of both nations, and also urged Seoul to ask the South Korean-based company hired by Myanmar to stop activities in the disputed waters. The foreign advisor of Bangladesh, Iftekhar Ahmed Chowdhury met Chinese ambassador Zheng Qingdian in Dhaka. After the meeting he hoped that Myanmar would stop activities on the disputed waters. In Beijing Chinese foreign ministry spokesman Qin Gang said, “We hope the countries will settle it through equal and friendly negotiations and maintain a stable bilateral relationship." China also promised to contribute in an appropriate manner as their friend.

The weeklong standoff was diffused when Myanmar removed natural-gas exploration equipment from the disputed zone. But Myanmar also stated that the move was technical, as the South Korean company undertaking the exploration work had completed its seismic survey in Block AD-7 and shifted to another offshore block, A-3. The state-run New Light of Myanmar said South Korea’s Daewoo International Corp had drilled an exploration well down to the targeted depth in Block AD-7 between October 17 and November 5 and the necessary survey was completed. Most importantly it also stated that "further tasks would be carried out according to the work programme."

Myanmar has claimed that withdrawal was not in response to the request of Bangladesh . Myanmar alleged Bangladesh had ``lawlessly demanded that the drilling should be suspended.'' A senior official from Myanmar’s military government said they were open to talks, but insisted that oil and gas companies were operating inside their territory and far away from the disputed sea boundary. Myanmar also asserted that the drilling would carry on until it was concluded.'

Bangladesh Foreign Secretary Touhid Hossain who had a meeting with Myanmar's Deputy Foreign Affairs Minister Maung Myit in the wake of the crisis, stated that it was unclear whether the removal of rig was due to a government order or a ``unilateral decision of the South Korean company.''

Myanmar has also alleged that Bangladesh was acting at the instigation the US. It was hinted by a Myanmar official who said, "The acts of Bangladesh have the signs of instigation by outsiders…a US warship is now in Bangladesh doing joint exercises. Bangladesh threatened us with no reason." The US has been one of the severest critiques of military junta in Myanmar. But it has denied any role in the crisis. The American embassy in Dhaka stated that a US Navy salvage ship had arrived in the southeastern Bangladesh port of Chittagong, but said it was there for a salvage and diving operation. It had nothing to do with the Bangladesh-Myanmar dispute and the US ship was nowhere near the disputed waters.

Continuing with their diplomatic effort to resolve the crisis the top leaders of Myanmar and Bangladesh also met in New Delhi on the sidelines of BIMSTEC summit. At the same time, both sides are also building troops on the border. Bangladesh and Myanmar share a 320 km (200 mile) border, partly demarcated by the Naf River. The Bangladesh Rifles (BDR) has even asked people in the bordering area to vacate in case of a flare up. The withdrawal of Myanmar is a temporary one. It has at best provided some time to both sides to solve the issue diplomatically. But in case they fail in this a military flare up is not ruled out.

(The views expressed by the author are his own. The author can be reached at e-mail: anandkrai@yahoo.com)