Dhaka, Bangladesh (BBN) – The US oil giant, ConocoPhillips has started its preliminary work to conduct exploration in deepwater gas blocks in the Bay of Bengal following the government’s recent approval of its work plan, officials said.
“ConocoPhillips is eyeing to conduct seismic survey in the two offshore blocks that were awarded to it, in the coming winter starting from October next,” a senior Petrobangla official was quoted by the Financial Express (FE), a local newspaper, as saying.
He said the US firm has already assigned a local firm to carry out an environment impact assessment (EIA) survey before initiation of its planned seismic program.
The Bangladeshi firm has also started its job to complete it in time, the official said adding that the US company will initially conduct 2,200 line-kilometer two-dimensional seismic surveys in the Bay of Bengal.
State-owned Petrobangla approved the work plan of the US oil major a couple of weeks ago to quicken the much-needed exploration in deep water in the Bay of Bengal.
ConocoPhillips signed a production sharing contract (PSC) with Petrobangla on June 16 last for a part of two deepwater gas blocks – DS-08-10 and DS-08-11 – in the Bay of Bengal, which the US oil giant won in the 2008 bid round.
This PSC is Bangladesh’s first deepwater exploration contract and is the country’s first contract with an international oil company since 2001, when a deal was signed with Shell and Cairn Energy for onshore gas blocks 5 and 10.
Under the PSC, ConocoPhillips will get a total of nine years to carry out exploration work, with five years as a primary exploration period and two years each for the first and second extended exploration periods.
The company has provided a $52 million guarantee for the initial exploration period, $58 million for the first extension period and $ 50 million for the second extension period.
The PSC gives ConocoPhillips the right to explore around 70 per cent of block DS-08-10 and 85 per cent of block DS-08-11.
It will not be able to undertake any exploration work in the rest of the two blocks until Bangladesh resolves its maritime boundary dispute with neighbours, India and Myanmar, both of which have staked claim to the area.
BBN/SSR/AD-20Aug11-11:05 am (BST)
