Australian company Santos has started oil and gas exploration on Tuesday at the Magnama structure in the shallow block-16 of Bay of Bengal.
Official with the state owned Bangladesh Petroleum Exploration and Production Company (Bapex) told energynewsbd.com that drilling work has been started at Magnama.
"The drilling work is started at 10 meter bellow the water surface in exploration well-2," said the Bapex official.
The official also said that Indian Aban Offshore Ltd is given the drilling work. The drilling work is conducted with deep driller-8 rig. It will be finished within two months.
In January 18, Bapex and Santos signed a sales and purchase agreement.
As per the agreement, Santos would invest 51 percent and Bapex 49 percent for the drilling work expenses.
Bapex would give Santos $ 28.85 million as part of joint investment. The expenses will be carried out from the Gas Development Fund (GDF).