Bapex, Santos Ink Agreement to Drill Offshore Bangladesh

Bangladesh Petroleum Exploration and Production Company (Bapex) on Monday signed an agreement with Australia’s Santos for offshore drilling in the Magnama structure in the Bay of Bengal, Dhaka Tribune reported.

Both companies would form a joint venture in which Santos will have 51 percent stake while Bapex will own 49 percent.

As per the binding agreement Bapex will put in $28.85 million, $16.35 mn for seismic survey work already completed and $12.5 mn for the drilling of an exploratory well, Dhaka tribune added.

The agreement should come into effect by September. Bapex MD Md Atiquzzaman said work is expected to start by winter (January 2017).  

The Magnama structure is located within shallow sea Block 16 in the Bay of Bengal, where the Sangu well, which now remains shut, is located. Santos recently mapped mean GIIP for Magnama at 1.5 trillion cubic feet (Tcf).

Before the deal Santos owned 100 percent interest in Magnama structure. In October 2007, Santos acquired a 37.5 percent interest from Cairn Energy in the Sangu Development Area and a 50 percent interest in the Block 16 exploration acreage, located in the Bay of Bengal. In December 2010, Santos acquired the remainder of Cairn’s interests in Bangladesh and became operator of the acreage.