The government has awarded two shallow water blocks in the Bay of Bengal to an Indian state-run company to explore gas and oil in order to help Bangladesh overcome energy shortage.
The production sharing contract, known as PSC, was signed at the Petrobangla in the capital.
Under the agreement, ONGC Videsh will explore the SS-04 and SS-09 blocks in the Bay with an investment of $144.8 million in partnership with Bangladesh Petroleum Exploration and Production Company Ltd and India Oil.
The block SS-04 covers an area of 7,269 square kilometres and the block SS-09 covers an area of 7,026 square kilometres.
Petrobangla will get between 70 percent and 90 percent of oil and condensate and between 60 percent and 85 percent of gas to be discovered in the blocks.
Finance Minister AMA Muhith was present at the signing ceremony.