Bangladesh signs deep sea exploration deal with Posco Daewoo

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DHAKA: The government of Bangladesh and South Korean company Posco Daewoo Corporation have signed a joint agreement to explore oil, gas and mineral resources in deep seas on Tuesday. 

The deal was signed by Sayed Asfaquzzaman, secretary of Bangladesh Oil, Gas and Mineral Corporation (Petrobangla) and Khadiza Nazneen, deputy secretary of Energy and Mineral Resources Division (EMRD) of Bangladesh and Si Bo Joo, senior executive vice-president of Posco Daewoo at Petrobangla Headquarters.

Under the agreement Bangladesh would get 65 percent to 90 percent of gas-condensate after production cost while for the natural gas it would be 60 percent to 85 percent after the cost.

 

Speaking to reporters, Posco Daewoo CEO Young Sang Kim said “Around $5 million will be invested in the first two years for a 1,000-line-kilometre 2D seismic survey and in the third year, we will invest $7 million for a 1,000-square-kilometre 3D seismic survey.”

He added “In fourth and fifth years, the company will invest around $100 million for exploratory well drilling.”

In the agreement, the initial exploration phase is stipulated at five years which could be extended by another three years.

This is not the first the first time Bangladesh has explored deep sea minerals. In 2011, it signed an agreement with US company ConocoPhillips.