Cairn & Shell Sign PSC For Two Blocks In Bangladesh
Shell and Cairn Energy signed a deal for exploration of oil and gas in two blocks in Bangladesh. The two companies signed a production sharing contract for blocks 10 and 5 with the Bangladesh government and state-owned oil and gas company Petrobangla.
Under the agreement Shell and Cairn would each have a 45 percent share in the two blocks and 10 percent would be held by state-run Bangladesh Petroleum Exploration and Production Co (BAPEX).
A seismic survey covering over 2,500 square kilometers will be carried out and five exploration wells will be drilled in block 10 located in Bangladesh's southern Noakhali and Bhola districts. An aerial survey over 6,500 square kilometers and a 500 square kilometer seismic survey along with one exploratory well in block 5, close to the Sundarbans, which is the world's largest mangrove forest in the country's southwest, will be carried out.
Under the terms of the agreement the companies will complete seismic surveys and exploration wells within seven years.
Shell and Cairn, which were earlier offered blocks 15 and 16, are currently producing 150 million cubic feet of gas per day from its offshore gas field in block 15 in the Bay of Bengal. The joint venture has already invested over $550 million in Bangladesh.