Santos-Kris Energy JV Initiates Seismic Survey Offshore Bangladesh

Santos and Kris Energy have initiated two-dimensional (2D) seismic survey this week in Block SS-11 offshore Bangladesh, according to Financial Express Bangladesh.

The exercise will be carried out on behalf of the joint venture by French firm CGG at a cost of around $ 9.76 million, the newspaper stated citing sources.

The shallow water Block - SS-11 - is highly potential, as it is close to Myanmar's territorial water, where the neighbouring country discovered huge natural gas reserves. The block covers an area of 4,475 sq km in the Bay of Bengal. The majority of the block lies in shallow waters up to 200 metres with the furthest southwest portion extending into water depths up to 1,500 metres.

KrisEnergy holds a 45% non-operated working interest in the exploration block. Santos is the operator with 45% and Bangladesh Petroleum Exploration & Production Company Limited (BAPEX) holds 10%.

According to Financial Express Santos-Kris JV has committed to drill an exploration well, conduct 1,876 line kilometer 2D seismic survey and 300 sq km 3D survey, and offered a bank guarantee of $15 million, for the initial five years of exploration.

The JV bidder would require investing around $30-32 million to carry out its work plan under the production sharing contract (PSC) during the initial years.

The contract period for exploration will be eight years in total. The contractor will be allowed to operate and sell oil and gas for 20 years from an oil-field and 25 years from a gas-field.