India’s ONGC Videsh (OVL) has secured an extension at a pair of blocks off Bangladesh as the South Asian nation chases domestic discoveries to help meeting rising gas demand.

OVL secured the two-year extension from Bangladesh's state oil company Petrobangla to carry out exploration work in shallow-water blocks SS-04 and SS-09 in the Bay of Bengal.

The production sharing contracts for the two tracts were set to expire in February next year, but have now been extended until early 2023, according to local media reports.

OVL is planning to drill one exploration well in the SS-04 block during the upcoming winter season and has started mobilising personnel and drilling equipment.

The Indian overseas explorer was initially planning to spud the much delayed well earlier this year, but its drilling plans were delayed due to the coronavirus pandemic and resultant local movement restrictions imposed by the government.

OVL is committed to drill at least one well on both its Bangladesh blocks.

The commitment workscope also calls for the acquisition of 2700 line kilometres of 2D seismic on each of the blocks.

OVL, which in early 2014 signed the PSCs for the two blocks, has already acquired around 3100 line-kilometres of 2D data and an ocean-bottom cable survey on its Bangladesh assets.

Block SS-04 is held by partners OVL, Oil India Limited and Petrobangla.

Energy-hungry Bangladesh is keen for an exploration renaissance as its gas supply demand gap widens and the South Asian nation is forced to increasingly rely on costly imports of liquefied natural gas.

Exploration

ONGC Videsh wins more time at pair of Bangladesh offshore blocks