Santos to buy Cairn Bangladesh Sangu interest

Santos International Holdings Pty. Ltd. will acquire the Cairn Energy PLC subsidiary that held an interest in Sangu natural gas field off Bangladesh and an interest in Block 16 exploration acreage.

By OGJ editors
HOUSTON, Nov. 5
-- Santos International Holdings Pty. Ltd. will acquire the Cairn Energy PLC subsidiary that held an interest in Sangu natural gas field off Bangladesh and an interest in Block 16 exploration acreage.

Santos, which first invested in Bangladesh in 2007 with the purchase of Cairn Energy Bangladesh Ltd., plans to drill three wells in the Sangu area in 2011 after shooting seismic surveys this year.

Sangu field averaged 33 MMcfd of gas in the first 3 months of 2010, down from more than 60 MMcfd of gas at yearend 2008. It was discovered in 1996 and went on production 2 years later. Cairn Energy Sangu Field Ltd. added compression in mid-2009.

Cairn Energy Sangu holds a 37.5% interest in Sangu, which it operates, and a 50% interest in Block 16. HBR Energy Inc. holds the remaining interest in Sangu.

The purchase by Santos represents Cairn Energy’s exit from Bangladesh, where it has invested more than $1 billion and operated for 16 years.

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