The state-run Petrobangla has extended the tenure of contract with India's oil and gas exploration company -- ONGC Videsh Ltd -- by two more years until February 2023.
The deal with the Indian firm was set to expire in February 2021 after an initial two-year extension.
Earlier, the Petrobangla signed two production sharing contracts (PSCs) with ONGC, the operator of blocks SS-04 and SS-09, on February 17, 2014, which was set to expire in February 2019.
India's ONGC Videsh Ltd, however, has planned afresh to initiate drilling of an offshore exploratory well in the coming winter to delineate natural gas reserve in shallow sea block SS-04.
The company is now bringing in necessary manpower to carry out the exploration, said a senior Petrobangla official.
Drilling a well in Block SS-04 by the Indian firm is mandatory as per the PSC between the consortium comprising the ONGC and the Oil India Limited (OIL), and the state-run Petrobangla and the government.
The ONGC will also have to drill another well in the shallow water Block SS-09. The company planned to initiate drilling of an exploratory well at Kanchan in Block SS-04 last year.