Posco Daewoo to Explore for Gas Offshore Bangladesh

Bangladesh has signed a five-year oil and gas exploration agreement with South Korean Posco Daewoo Corporation relating to deep sea Block-12 in the Bay of Bengal, The Daily Sun reported March 15.

The South Korean company would spend $3-5mn for carrying out 2-D surveys in first two years, $5-7mn for the 3-D survey in the third year and $50-100mn for drilling wells in fourth and fifth years, the newspaper added. The five-year deal can to extended by another three years.

Posco Daewoo discovered gas in a block offshore Myanmar which is adjacent to Block-12. “We can find gas in Bangladesh as well as the petroleum structure and geological setting is similar to the two blocks,” said Posco Daewoo CEO Young-Sang Kim, at the signing ceremony.

Bangladesh is planning more offshore bidding round in next couple of years as it seeks investment of $15bn in the sector, The Daily Sun reported. The south Asian country is facing shortage of gas as domestic demand expands. The country is also looking at importing LNG and has started work on building import infrastructure.

Shardul Sharma