Petrobangla May Buy All of Santos' Gas Supplies

Bangladesh’s Petrobangla is likely to buy the entire production of the new offshore gas well explored recently by Australia’s Santos if the price is found rational.

Santos is ready to by supply by March the gas discovered in a well in the Block 16 early this month.

Financial Express Bangladesh reported that Santos has set $4.50 per unit as the baseline price for its gas from Block 16, which is 55 per cent higher than the previous price of $2.90 per unit.

Santos now sells gas at $2.90 per unit to Petrobangla from the existing Sangu field.

The Australian firm has received expression of interest from number of company based in Chittagong for buying gas at market price.

Santos will be allowed to sell gas to other private firms if Petrobangla declines.

Santos began a $128 million three-well drilling programme in Block 16 in October last year, but it could not discover any commercially viable gas reserves in the first two wells it drilled.