Bangladesh signs PSCs with three company JV

The republic of Bangladesh and its oil and gas company, Petrobangla, Wednesday signed production sharing contracts for onshore Blocks 10 and 5 with a joint venture made up of Shell Hydrocarbons Holdings BV, Cairn Energy PLC, and Bangladesh Petroleum E&P Company Ltd. Shell and Cairn will be 45% partners in the two blocks, with BAPEX holding the remaining 10% stake.

July 4, 2001

2 min read

By the OGJ Online Staff

LONDON, July 4 -- The republic of Bangladesh and its oil and gas company, Petrobangla, Wednesday signed production sharing contracts for onshore Blocks 10 and 5 with a joint venture made up of Shell Hydrocarbons Holdings BV, Cairn Energy PLC, and Bangladesh Petroleum E&P Company Ltd.

Shell and Cairn will be 45% partners in the two blocks, with BAPEX holding the remaining 10% stake. Block 10, known as greater Noakhali and Bhola, is located in the south of Bangladesh, while Block 5, greater Khulna, is in the south west.

The scope of exploration work for Block 10 includes a 2,500 km of seismic survey, and the drilling of 5 exploration wells. On Block 5, a 6,500 km aerial survey will be conducted, along with 500 km of seismic, and 1 export well drilled.

Shell stressed that no exploration activities would be carried out within the Sundarbans Reserved Forest on Block 5, and that environmental and social studies to determine the possible impact of exploration on both block would be completed before any work began.

Reinier Reddingius, managing director of Shell Hydrocarbons Holdings, said the PSC signing "augured well for Shell's and its coventurers' long term commitment to, and partnership with Bangladesh."