ConocoPhillips Signs PSC for Exploration in Bay of Bengal

ConocoPhillips has signed a Production Sharing Contract (PSC) with the Government of Bangladesh and Petrobangla covering two blocks in the deepwater area of the Bay of Bengal, representing ConocoPhillips' first investment in the People's Republic of Bangladesh. ConocoPhillips holds 100 percent of the working interest in the PSC.

"ConocoPhillips is pleased to become part of the Bangladesh oil and gas community," said Larry Archibald, senior vice-president, Exploration and Business Development. "We fully expect that this contract signing will be the first step in a long and successful relationship between ConocoPhillips, Petrobangla and the Government of Bangladesh."

Blocks DS-08-10 and DS-08-11 cover a total area of 5158 sq. km., (1.27 million acres), and are located in water depth of 1000-1500 meters (3,300-5,000 feet) approximately 280 kilometers (175 miles) from the port city of Chittagong. The area awarded under the PSC is in the Bangladesh portion of the Bay of Bengal, the largest submarine fan in the world.

The deepwater area of Bangladesh is virtually unexplored, and ConocoPhillips' exploration efforts in Blocks DS-08-10 and DS-08-11 will begin as soon as possible with the acquisition of a large 2D seismic survey.