Seeking to tap a virtually untouched market, ConocoPhillips (NYSE:COP) has inked a production share deal with the Bangladesh government and its national oil company Petrobangla, marking its first investment in the region.
The Houston-based oil explorer and producer said the deal, of which ConocoPhillips holds 100% of the working interest, covers two blocks in the deepwater area of the Bay of Bengal.
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No financial details were disclosed in the announcement.
ConocoPhillips is pleased to become part of the Bangladesh oil and gas community, said Larry Archibald, the companys senior vice-president of exploration and business development. We fully expect that this contract signing will be the first step in a long and successful relationship between ConocoPhillips, Petrobangla and the Government of Bangladesh.
The two blocks cover a total of 1.27 million acres and are located in water depth of 1,000 meters to 1,500 meters, about 175 miles from the port city of Chittagong, the second largest city in Bangladesh.
ConocoPhillips said the deepwater area of the country is virtually unexplored. Its efforts in the region will begin as soon as it acquires necessary surveys.