UMC signs PSC for large block in Bangladesh

Bangladesh Block [32439 bytes] OCS Sale 166 Top 30 High Bidders [61573 bytes] United Meridian Corp. (UMC), Houston, has signed a production-sharing contract (PSC) with Bangladesh covering a large onshore block in that country. Block 22 covers 3.3 million acres in the Chittagong Hills area of southeast Bangladesh and is on trend with prolific natural gas production in the Surma basin to the north, as well as shallow oil production to the south.

March 17, 1997

2 min read

United Meridian Corp. (UMC), Houston, has signed a production-sharing contract (PSC) with Bangladesh covering a large onshore block in that country.

Block 22 covers 3.3 million acres in the Chittagong Hills area of southeast Bangladesh and is on trend with prolific natural gas production in the Surma basin to the north, as well as shallow oil production to the south.

The block contains numerous untested surface anticlines with shows of oil and gas at the surface, UMC said. Block 22's west side runs adjacent to Block 15, which contains the 1996 Cairn Energy plc offshore discovery well, 1 Sangu, which flowed on test at a rate of 82 MMcfd of gas (OGJ, Nov. 11, 1996, p. 103). That find has been scheduled for development.

UMC plans to drill for oil in tertiary age reservoirs but believes gas may be present in these reservoirs, as well. The company will conduct surface geographic mapping and other exploration work to prepare for a 1998 well commitment decision.

Preliminary plans call for drilling three wells, the first slated for 1998. Under terms of the PSC, UMC is under no obligation to drill a well.

Operator UMC has a 40% interest in the block, with other interests held by an undisclosed, privately held company.