UNB, Dhaka :
The Cabinet Economic Affairs Committee on Wednesday in principle approved a proposal to allow state-owned Bapex to sign a “Sale and Purchase Agreement (SPA)” with Australian oil company Santos for offshore gas exploration under a joint venture.
The proposed Bapex-Santos joint venture will explore gas in the country’s Magnama offshore gas structure located in Block-16.
The Cabinet body, in a meeting with Finance Minister AMA Muhith in the chair, gave the go-ahead to the proposal placed by the Energy Division. Senior ministers who are members of the committee were present at the meeting.
Energy Division officials said under the SPA, Bapex will obtain a 49 percent stake in the joint venture with Santos for Magnama structure by paying $28.85 million by January 31 while Australian company will hold the remaining 51 percent stake.
This SPA has been a follow-up step towards forming a joint venture as Bangladesh Petroleum Exploration and Production Company Ltd (Bapex) and Santos had earlier signed a “binding offer agreement” in June last in this regard as an initial deal.
The Magnama structure was discovered a few years ago by foreign oil company Cairn Energy, but it was not fully explored by drilling adequate number of wells.
Later, Santos acquired Magnama gas field from Cairn Energy which had drilled an exploration well in 2007-08, and subsequently carried out 213 line kilometres of 3D seismic survey in early 2010. After taking over the field, Santos has now moved to conduct further drillings under the deal with Bapex.
Petreobangla officials said working with Santos in Magnama field will be a new experience for Bapex as it had never worked in any offshore gas field.
The Cabinet Economic Affairs Committee on Wednesday in principle approved a proposal to allow state-owned Bapex to sign a “Sale and Purchase Agreement (SPA)” with Australian oil company Santos for offshore gas exploration under a joint venture.
The proposed Bapex-Santos joint venture will explore gas in the country’s Magnama offshore gas structure located in Block-16.
The Cabinet body, in a meeting with Finance Minister AMA Muhith in the chair, gave the go-ahead to the proposal placed by the Energy Division. Senior ministers who are members of the committee were present at the meeting.
Energy Division officials said under the SPA, Bapex will obtain a 49 percent stake in the joint venture with Santos for Magnama structure by paying $28.85 million by January 31 while Australian company will hold the remaining 51 percent stake.
This SPA has been a follow-up step towards forming a joint venture as Bangladesh Petroleum Exploration and Production Company Ltd (Bapex) and Santos had earlier signed a “binding offer agreement” in June last in this regard as an initial deal.
The Magnama structure was discovered a few years ago by foreign oil company Cairn Energy, but it was not fully explored by drilling adequate number of wells.
Later, Santos acquired Magnama gas field from Cairn Energy which had drilled an exploration well in 2007-08, and subsequently carried out 213 line kilometres of 3D seismic survey in early 2010. After taking over the field, Santos has now moved to conduct further drillings under the deal with Bapex.
Petreobangla officials said working with Santos in Magnama field will be a new experience for Bapex as it had never worked in any offshore gas field.
