State-owned Petrobangla will sign a deal with Korean company POSCO DAEWOO Corporation on March 14 for exploration of oil and gas in the deep sea block-12 in the Bay of Bengal.
Bangladesh is now facing nagging gas crisis, forcing the government to consider importing costly Liquefied Natural Gas (LNG).
“We will sign the final deal with the company on March 14 for exploration the offshore block-12 near Myanmar,” Petrobangla Chairman Abul Mansur Md Faizullah said.
On December 7, Petrobangla signed an initial deal with the Korean company for exploration of oil and gas in the deep sea.
As per the proposed deal, the initial exploration period will be five years.
The Korean company will conduct 1,800 square kilometers 2D seismic survey in first two years. It would conduct 1,000 square kilometers 3D seismic survey in the third year and drill an exploratory well in the fourth and fifth years.
The 2D survey will begin in 2017 and it will be possible to have an initial idea about the oil-gas reserve in the block in 2018.
The South Korean company will sell 1,000 cubic feet of gas at $6.5 if gas is found in the block, according to the proposed deal.
Earlier, the Petrobangla invited expression of interest (EoI) to explore country’s oil and gas on deep offshore blocks-12, 16 and 21 on February 5, 2016.
Then, Kris Energy (Asia) Limited, POSCO and Statoil showed interest. But the POSCO only submitted expression of interest to explore block-12 under the Speedy Supply of Power and Energy (special provision) Act-2010.