The Energy and Mineral Resources Division (EMRD) next week will send a summary of signing an initial to explore a shallow sea block in the Bay to the prime minister for her approval.
The exploration work will be implemented under a joint venture initiative of Santos and Kris Energy Limited.
On September 8, the EMRD approved the proposal to sign the initial under model production sharing contract (MPSC)-2012 to explore oil and gas in shallow sea block 11.
The EMRD officials have confirmed the information to the Dhaka Tribune.
Petrobangla, the state-run oil, gas and mineral resources agency, recently forwarded a recommendation to the EMRD secretary to sign the initial.
“We hope to sign the initial after approvals of Prime Minister Sheikh Hasina, who is in charge of the energy ministry, and the cabinet committee on economic affairs,” a Petrobangla official said.
On July 29, Australia-based Santos and Singapore-based Kris Energy jointly dropped the bidding documents for the block. They offered to explore block 11, conduct 2D- and 3D-seismic surveys, and drill one well within the initial period of five years.
The IOCs would spend $32m for the exploratory well and other works. They will deposit bank guarantees worth $15m as proposed in the bidding.
Santos is currently producing gas at block 16 while Kris Energy has signed an agreement to take over Tullow Bangladesh Limited’s operations on Bangura gas field at onshore block 9 for 16 years at an expense of $42.35m.