The Cabinet Economic Affairs Committee approved a proposal in
principle on Wednesday to allow the state-owned Bangladesh Petroleum
Exploration and Production Company Limited (BAPEX) to sign a Sale and
Purchase Agreement (SPA) with Australian oil company Santos for
offshore gas exploration at Deep Sea Block-16 (DS-16) under a joint
Bapex’s parent organization Petrobangla, the state-run Oil, Gas, and
Mineral Resources Corporation have earlier drafted a ‘Sales Purchase
Agreement’ (SPA) to conduct the exploration. The SPA draft was sent to
the Executive Committee of the National Economic Council (ECNEC)
meeting on last week for approval and the SPA deal will be finalized
once it gets approval from the ECNEC.
Prior to that, Santos Bangladesh Limited (SBL) submitted a proposal to
the Bapex to conduct an exploration at the Deep Sea block-16’s magnama
ring-fenced area. According to that proposal, Santos was willing to
hand over its 49 percent share for its partner. Bapex then formed a
joint venture with Santos with a 49 percent share and according to the
estimation Bapex was to invest Tk. 300 crore for the exploration as a
However, after a few chaffers both the organizations settled it to TK
230.8 crore and the Bapex approved it in its 372nd board meeting.
Energy and Mineral resources ministry sources stated that the amount
required to meet the exploration cost will be managed by the Gas
Development Fund (GDF) Santos would get the money within 31st January
once it gets sanctioned.