Deal #7526

Location #1

Spatial accuracy level
Exact location
Location
Moheskhali Upazila, Bangladesh

Latitude
21.5834097
Longitude
91.92946810000001
Facility name
Maheshkhali Petroleum Depot
Target country
Bangladesh
Location description
From Cox's Bazar, Maheshkhali, Matarbari to Patainga, Chittagong 94 km length two petroleum pipelines will be set up.
Comment on location
64 km pipeline will be under the ocean and 30 km will be under the land of the bay.

Land area

Intended size (in ha)
1214.057
Size under contract (leased or purchased area, in ha)
77.6996

Intention of investment

Intention of investment
Industry
Comment on intention of investment
Intention is industry as it will not extract oil, it will only be a refinery and a depot of oil

Nature of the deal

Nature of the deal
Lease
Comment on nature of the deal
BPC asked to the Ministry of Forestry and Environment to give them 192 acres of land on lease for oil refinery purpose.

Negotiation status

Negotiation status
Concluded (Oral Agreement)
Comment on negotiation status
Ministry of Forestry and Environment have given the land to BPC on lease for oil refinery with a condition that they have take care of the forest for a period of 10 years and plant trees again.

Implementation status

Implementation status
Startup phase (no production)
Comment on implementation status
After agreeing with the condition given by Ministry of Forestry and Environment, BPC started the project activities.

Contract farming

Contract farming
No

Operating company

Name of investment project
Maheshkhali Petroleum Depot
Comment on investment chain
Bangladesh Petroleum Corporation(Parent) of Eastern Refinery. Eastern Refinery is the operating company willing to establish petroleum depot. Bangladesh Government is the parent of Bangladesh Petroleum Corporation.

 

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Data source #1

Data source type
Media report
File
Publication title
মেহশখালীেত উয়েনর মহায
Date
2019-07-16

Data source #2

Data source type
Other (Please specify in comment field)
File
Date
2016-05-04
Comment on data source
Online news.

Data source #3

Data source type
Media report
File
Publication title
তেল খালাসের টার্মিনাল নির্মাণে কাটা হবে ২ হাজার গাছ
Date
2018-05-15

Data source #4

Data source type
Other (Please specify in comment field)
File
Date
2016-12-08
Comment on data source
Online web portal.

Data source #5

Data source type
Media report
File
Publication title
সংরক্ষিত বনের দাম কত!
Date
2017-12-28

Data source #6

Data source type
Media report
File
Publication title
শর্ত সাপেক্ষে ৩২৪৭টি গাছ কাটার অনুমতি মন্ত্রিসভার
Date
2018-05-14

Data source #7

Data source type
Media report
Publication title
25,000 trees at Maheshkhali reserved forest may be cut down
Date
2018-04-19

How did the community react?

Community reaction
Mixed reaction
Comment on community reaction
The locals and forest department have issues with forest ministry about the project.

Presence of land conflicts

Presence of land conflicts
Yes
Comment on presence of land conflicts
According to forest dept. 25000 trees will be cut down for this project which in return damaged land and soil. It is a threat for the locals. That's why confliction was there among the locals.

Negative impacts for local communities

Negative impacts for local communities
Environmental degradation

Promised benefits for local communities

Promised benefits for local communities
Productive infrastructure (e.g. irrigation, tractors, machinery...)
Financial Support
Comment on promised benefits for local communities
BPC ready to give away $516332.13 as compensation($161057.73 for forest assets and $355274.40 for livestocks. Tree plantation will be 5 times to the trees cut down, BPC chairman said. It is estimated to produce/ Extract 90lacs ton oil (Diesel and Crude) from this project per year. The river is near the project area, which is beneficial for ship passing with loaded petroleum in it.

Former land owner (not by constitution)

Former land owner
Private (smallholders)
Other
Comment on former land owner
Farmers, locals.

Former land use

Former land use
Smallholder agriculture
Forestry
Comment on former land use
Was basically forest. Some smallholder farmers are there for farming.

Former land cover

Former land cover
Cropland
Forest land
Comment on former land cover
Basically, a mangrove forest with different kinds of trees, animals, birds etc.

Detailed crop, animal and mineral information

Crops area
Grapes, Herbs (unspecified), Mango, Other crops (please specify)
Comment on crops
70 types of trees including Bot, Lali, Kadam etc and herbs are there. No specific data found on crop area, yield and export.
Livestock area
Other livestock (please specify)
Comment on livestock
19 types of mammals, 8 kinds of reptiles, 4 types of bipolar and 27 kinds of birds are there. It is also the place for Python and Maya Deer. No specific data found on livestock area, yield and export.
Resources area
Hydrocarbons (e.g. crude oil)
Comment on resources
It is estimated to produce/ Extract 90lacs ton oil (Diesel and Crude) from this project per year. No specific data found on resources area, yield and export.

Water extraction envisaged

Water extraction envisaged
No
Comment on water extraction envisaged
No specific data found.

Source of water extraction

Source of water extraction
Surface water (River)
Comment on source of water extraction
The river is near the project area, which is beneficial for ship passing with loaded petroleum in it.

Voluntary Guidelines on the Responsible Governance of Tenure (VGGT)

Application of Voluntary Guidelines on the Responsible Governance of Tenure (VGGT)
No

Principles for Responsible Agricultural Investments (PRAI)

Application of Principles for Responsible Agricultural Investments (PRAI)
No

Overall comment

Overall comment
Bangladesh Petroleum Corporation intended to establish an oil depot at Maheshkhali by taking permission from the ministry of forestry and environment. "Eastern Refinery" a subsidiary of Bangladesh Petroleum Corporation asked for the land in Maheshkhali for oil refine. Ministry of Forestry and Environment have given the land to BPC on lease for oil refinery with a condition that they have take care of the forest for a period of 10 years and plant trees again. After agreeing with the condition given by Ministry of Forestry and Environment, BPC started the project activities. BPC estimate their project cost around $473699200 crore. As per latest media news the project cost estimated $651336400. The project will reduce oil import cost of Bangladesh. Some locals are affected by the project but they are also given compensation for their losses.

Jan. 27, 2020, 1:13 a.m.

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