Petrobangla to Ink Deals for Offshore Blocks Soon
State-owned Bangladesh Oil, Gas & Mineral Corporation Petrobangla plans to invite two foreign oil and gas companies to sign agreements to explore 3 shallow water blocks in the Bay of Bengal.
“We will send letters to ConocoPhillips and ONGC Videsh Ltd. for this purpose,” Petrobangla Chairman Hossain Monsur told local media Dhaka Tribune Monday.
ConocoPhillips and ONGC were among the bidders for the exploration of 9 shallow water blocks under the Offshore Bidding Round 2012 but foreign oil firms were interested in only three. Bangladesh's cabinet committee on economic affairs gave its approval for Petrobangla to sign the agreements for Blocks 4, 7 and 9.
“After the initial signing, the cabinet committee will approve the signing of production sharing contract (PSC),” Monsur told Dhaka Tribune, adding that the whole documentation process should be completed by September.
ConocoPhillips submitted a bid for Block 7, while ONGC put in bids for Blocks 4 and 9.
ConocoPhilips intends to spend $23.5 million on Block 7 to carry out 2D seismic survey covering 1,458 line miles (2,347 line kilometers), 3D seismic survey over a 193-square mile (500-square kilometer) area and drill 1 exploration well. The Bangladesh government will have 55 to 80 percent share of the profit for both oil and gas in the block.
ONGC is likely to invest $38.4 million in Block 4 to conduct 2D seismic survey covering 1,678 line miles (2,700 line kilometers), 3D seismic survey over an area of 77 square miles (200 square kilometers) and drill 2 wells. The government’s profit-sharing ratio will be 60 to 85 percent for gas and 70 to 90 percent for oil.
The Indian company will also spend $64.8 million in Block 9 to undertake 2D survey covering 1,771 line miles (2,850 line kilometers), 3D seismic survey over 116 square miles (300 square kilometers) and drill 3 wells.
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