DHAKA: Petrobangla, the state-run oil company, signed a landmark procurement sharing contract for two gas blocks with Oil & Natural Gas Corporation (ONGC) of India on Monday afternoon.
 
The deal singing ceremony was held at 3:30pm at Petrobangla office in Kawranbazar area in the capital.
 
The two gas blocks are SS04 and SS09.  
 
The contract is for 8 years with a right to operate and sell gas and oil for 20 years from oil field and 25 years from a gas field.
 
The ONGC has committed $58 million for exploration of block SS-04. The activities will involve carrying out 2,700 line km 2D seismic survey, 200 sq km 3D and drill two wells within the contract period.
 
For block SS-09, ONGC committed $85 million of exploration. To conduct at least 2,850 line km 2D seismic survey, 300 sq km 3D and drill three wells during the contract period.  
 
As per the contract terms, the above investment commitment has to be fulfilled irrespective of whether OVL decides to drop the project during the contract period. Therefore, the committed investment for the two blocks is $ 143 million.   
 
DK Sarraf, MD & CEO, ONGC briefed to media after the signing ceremony.  
 
Finance Minister AMA Muhith, State Minister for Power, Energy and Mineral Resources Nasrul Hamid and Indian High Commissioner to Dhaka, Pankaj Saran, graced the function.

BDST: 1350 HRS, FEB 18, 2014