The state-owned Bangladesh Petroleum Exploration and Production Company Limited, also known as Bapex is about to begin an exploration at the offshore block-16 with the assistance from the Australian oil company Santos.
Bapex’s parent organization Petrobangla, the state-run Oil, Gas, and Mineral Resources Corporation have already 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 passed from the ECNEC.
Santos Bangladesh Limited (SBL) submitted a proposal earlier 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 partner.
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.