Santos, Kris Energy to Explore Oil and Gas off Bangladesh
Wednesday, March 12, 2014

By Serajul Quadir, Reuters

Australian oil and gas company Santos and Singapore-based Kris Energy signed a production-sharing contract (PSC) on Wednesday to explore oil and gas in Bangladeshi waters.

State-run Bangladesh Oil, Gas and Mineral Corporation, known as Petrobangla, awarded shallow water blocks SS-11 in the Bay of Bengal to the two foreign energy firms.

Santos, which in October shut down operation of Bangladesh's only offshore gas field, saying it was not commercially viable, will be the operator of the new project and Kris Energy will join as a co-partner.

"It (gas exploration) is a continuous process to make Bangladesh a middle-income country by 2021 and also to become a developed country by 2041," Finance Minister Abul Maal Abdul Muhith told reporters at the signing ceremony.

Bangladesh had raised its natural gas production by 33 percent over the past few years to around 2,300 million cubic feet (mmcf) per day to meet demand which is rising by up to 10 percent a year, he said.

Bangladesh currently faces a daily shortfall in gas supplies of 500 million cubic feet (mmcf) on demand of more than 2,700 mmcf per day.

"Our national economy is propelled by natural gas and the PSC will be able to cater to the rising demand," he said.

Under the PSC, the firms will initially spend $15 million which will rise to up to $32 million, a senior energy official told Reuters.

The firms will also conduct an in-depth seismological survey of the block during a five-year initial exploration period which will be followed by a three-year exploration period, according to a document distributed to reporters during the signing event.

The contractors will be allowed to operate and sell oil and gas for 20 years from an oil field and for 25 years from a gas field.

They must offer to sell the gas first to Petrobangla but will be able to sell it on the Bangladesh market if Petrobangla does not buy it, according to the document.

Since Santos shut the Sangu offshore field permanently in October, Bangladesh has been dependent on onshore fields for natural gas output.

Last year Kris Energy bought some of Tullow Oil's Bangladesh oil fields.

(Reporting By Serajul Quadir; Editing by Susan Fenton)

Maritime Reporter September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


MARAD Backs Emissions Reduction Projects

The U.S. Department of Transportation’s Maritime Administration (MARAD) announced it will provide more than $1 million to support the development of two new emission-reducing maritime solutions.

Rolls-Royce to Cut More Staff of Marine Unit

Britain's Rolls-Royce said it would cut an additional 400 staff from its marine business by the end of next year, its latest move to make the unit more efficient

Wärtsilä Debuts Package for hydropower & industrial plant

Wärtsilä Corporation, a global leader in complete lifecycle power solutions for the marine and energy markets, expands into a new market segment, offering a comprehensive package of seals,


Historic Pacific Trade Deal Faces Skeptics in US Congress

Twelve Pacific Rim countries on Monday reached the most ambitious trade pact in a generation, aiming to liberalize commerce in 40 percent of the world's economy in a deal that faces skepticism from U.

Supramx Ship Delivered to Seanergy

Dry Bulk shipping company Seanergy Maritime Holdings Corp. announced today the delivery of a 56,819 dwt Supramax dry bulk vessel, renamed M/V Gladiatorship.   The vessel,

Danelec Marine Expands in Brazil

Press release - Danelec Marine has announced that it is expanding its presence in Brazil by naming Telnav Telecomuniçacões Navais a Certified Service Center. With

Offshore Energy

Kruszewski Joins Braemar Engineering

Braemar Engineering, the specialist maritime engineering consultancy, today announced the appointment of Chis Kruszewski to the role of Senior Electrical Engineer in its Offshore,

RigNet Partners Inmarsat to Offer Fleet Xpress

RigNet, Inc., a global provider of remote managed offshore communications solutions, telecoms systems integration services and collaborative applications to the oil and gas industry,

Ulstein Systems Ordered for New Rock Installers

Ulstein Power & Control announced it has been contracted by Chinese shipbuilder AVIC Weihai Shipyard Co. Ltd. to deliver power and control for two subsea rock installation

Maritime Standards Navigation Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2256 sec (4 req/sec)