BANGLADESH E&P PROJECT

OVERVIEW

Blocks SS 04 & SS 09

17thth February 2016

Updated on 6th May 2016

 Bangladesh E&P Project overview

Introduction

ONGC Videsh in consortium with Oil India Ltd (OIL) was awarded two adjacent shallow water
offshore blocks (partly on land)-SS 04 and SS 09 in Bay of Bengal on 20th August 2013. Both the blocks
fall in offshore as well as partly in coastal areas. The water depth is up to 200m.

Blocks are located within the proven Mio-Pliocene gas play fairway of the Bay of Bengal. They are on
trend with the giant Shwe field (Myanmar) to the south.

The blocks are not only in the discovery trend but also a few discoveries exist (Sangu, Kutubdia,
Magnama) in the block SS 04. However, the pool areas have been carved out from the awarded
block. Nevertheless, the blocks are in the Fold Belt area having excellent prospectivity as several yet
to be probed anticlinal structures that exist in the blocks.

Fig. 1 Block Location Map

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 Bangladesh E&P Project overview

Block SS 04

The Production Sharing Contract (PSC) was signed by Govt. Of Bangladesh, Bangladesh Oil, Gas &
Mineral Corp. (PETROBANGLA), the consortium of ONGC Videsh, Oil India (OIL) and Bangladesh
Exploration and Production Co. Ltd (BAPEX) on 17th Feb 2014. ONGC Videsh is the Operator of the
block with PI of 45%. OIL with 45% PI and BAPEX with 10% PI are the non-operating partners. BAPEX
stake in the block would be carried by the consortium of ONGC Videsh and OIL in equal proportion in
respect of all expenditures up to first commercial discovery.

The exploration term consists of 8 consecutive years comprising 5 years for initial exploration and 3
years for subsequent exploration. During the first phase of 5 years 2D seismic data API of 2700 LKM
along with one exploratory well of 3300m TVD below sea bed have been committed.

The contract area polygon of this block includes sub-blocks of Sangu (419 Sq. Km), Magnama (505 Sq.
Km), Kutubdia (210 Sq km) and Jaldi (546 Sq. Km). These sub-blocks are not part of the contract area
and as such not counted in the awarded area of 7,269 Sq. Km.

Brief of the contract is enumerated in the table below:

Block Area (Sq.km) Offshore/Onshore (Water Depth)

SS-04 7,269 Offshore; WD: 0-200 m
Nature of Contract The contract is a Production Sharing Contract (PSC)
PSC Signed on 17.02.2014 (Contract effective date)
Signature Bonus Nil
Performance Bond Nil
Partners & Participatory Interest
ONGC VIDESH Oil India Limited (OIL) BAPEX
45% 45% 10% (BAPEX share is carried by
ONGC VIDESH & OIL
proportionately)
Operator ONGC VIDESH
Exploration Phase-I Start Date: 17.02.2014 End Date: 16.02.2019
Period: 5 Years
MWP Planned Achieved
2D Seismic Acquisition 2700 LKM
3D Seismic Acquisition Nil
Exploratory Well 1 Well 3300mt.tvd Below
sea bed
Financial Commitment USD 19.2 Million (ONGC

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VIDESH Share)
Approved Investment USD 25.5 Million (ONGC
VIDESH Share)
Exploration Phase-II Start Date: 17.02.2019 End Date: 16.02.2022
Period: 3 years
MWP Planned Achieved
2D Seismic Acquisition Nil
3D Seismic Acquisition 200 sq. km.
Exploratory Well Minimum one Well
3300mt.tvd. Below sea bed
Financial Commitment USD 10 Million (ONGC
VIDESH Share)
Approved Investment
Expenditure till June USD 0.79 Million
2015

Block SS 09

The Production Sharing Contract (PSC) was signed by Govt. Of Bangladesh, Bangladesh Oil, Gas &
Mineral Corp. (PETROBANGLA), the consortium of ONGC Videsh & OIL and Bangladesh Exploration
and Production Co. Ltd (BAPEX) on 17th Feb 2014. ONGC Videsh is the Operator of the block with PI of
45%, OIL with 45% PI and BAPEX with 10% PI would be the non-operating partners. BAPEX stake in
the block would be carried by the consortium of ONGC Videsh and OIL in equal proportion in respect
of all expenditures up to first commercial discovery.

The exploration term consists of 8 consecutive years comprising 5 years for initial exploration and 3
years for subsequent exploration. During the first phase of 5 years 2D seismic data API of 2850 LKM
along with two exploratory well of 3300m TVD below sea bed have been committed.

Brief of the contract is enumerated in the table below:

Block Area (Sq.km) Offshore/Onshore (Water Depth)

SS-09 7,026 Offshore; WD: 0-200 m
Nature of Contract The contract is a Production Sharing Contract (PSC)
PSC Signed on 17.02.2014 (Contract effective date)
Signature Bonus Nil
Performance Bond Nil
Partners & Participatory Interest
ONGC VIDESH Oil India Limited (OIL) BAPEX
45% 45% 10% (BAPEX share is carried by

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ONGC VIDESH & OIL

proportionately)
Operator ONGC VIDESH
Exploration Phase-I Start Date: 17.02.2014 End Date: 16.02.2019
Period: 5 Years
MWP Planned Achieved
2D Seismic Acquisition 2850 LKM
3D Seismic Acquisition Nil
Exploratory Well 2 Wells 3300mt.tvd Below
sea bed
Financial Commitment USD 32.40Million (ONGC
VIDESH Share)
Approved Investment USD 44.25 Million (ONGC
VIDESH Share)
Exploration Phase-II Start Date: 17.02.2019 End Date: 16.02.2022
Period: 3 years

MWP Planned Achieved

2D Seismic Acquisition Nil
3D Seismic Acquisition 300 sq. km.
Exploratory Well Minimum one Well
3300mt.tvd Below sea bed
Financial Commitment USD 10.8 Million (ONGC VIDESH Share)
Approved Investment
Expenditure till June USD 0.65 Million
2015

Brief Geology of the Area

The blocks lie in the south eastern offshore part of Bengal Basin. Geologically, the blocks are in the
Fore Deep part of the basin. The basin can broadly be divided into two parts-the western shelf and
platform and the eastern Fore Deep.

The eastern Fore Deep can further be subdivided into:

a) Folded Flank
b) Basinal Area
i) Sylhet Trough
ii) Chandpur-Barisal Gravity High

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iii) Faridpur Trough

iv) Patuakhali Depression (Hatia Trough)
v)

Geological evolution of the basin starting from Upper Paleozoic time is directly related with the
breakup of Eastern Gondwana land and collision of the Indian Plate with the Eurasian Plate: Four
major stages of the evolution are:

1. Permo-Carboniferous pre-break up stage

2. Early Creaceous rift stage
3. Late Cretaceous-Eocene drift stage
4. Oligocene-Recent orogenic stage

SS 04

SS 09

Fig.2
Blocks SS 04 and SSTectonic
09 Map of Bangladesh and Block Location Page 5
 Bangladesh E&P Project overview

In the western platform part sedimentation is thin compared to the eastern Fore Deep part of the
Basin. Rapid subsidence of Fore Deep was compensated by the influx of huge amount of detritus
originating initially from the nearby sources (western and northern foreland shelves) and later from
the rising chains of Himalayas and Indo-Burman ranges since the Mid-Miocene. The sedimentary
cover of the basin in the deep basinal part of the Fore Deep has a thickness of 20 Km. Major part of
the sediment is deposited by the Ganges-Brahmaputra-Meghna river systems during Miocene to
Holocene time.

The oldest sediment is Permian Gondwana rock that lies over the Precambrian Basement complex.
Over the Gondwana rock successively lie the Cretaceous Rajmahal Trap, Paleocene Tura Sandstone,
Eocene Silhet Limestone and Kopili Formation, Oligocene Barail Formation, Miocene Bhuban, Bokabil
and Tipam Sandstone, Plio-Pleistocene Dupitila Sandstone, Pleistoce Dihing Formation and
Madhupur Clay, and Holocene Alluvial sediments. This generalized sequence is not common in all
parts of the Basin and in some places many Formations are missing due to depositional, non-
depositional, and post depositional erosion. The stratigraphic sequence is variable between the Basin
Fore Deep area and the Shelf Area.

Fig. 4. Comparison Stratigraphic Chart

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Studies Carried Out

ONGC Videsh obtained 2D legacy seismic data (SS 04:3917 LKM and SS 09:1424 LKM; Fig.5 ) while
acquiring the blocks. The available seismic and well data have been studied.

SANGU

JALDI
MAGNAMA
KUTUBDIA

SS-04

SS-09

Fig.5. Available vintage 2D Seismic Data

Well Data

Block SS 04
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The drilled wells data were studied. The salient features are:

PLAYS: Middle to Late Miocene sand bodies

TRAPS: Structural
Sangu-1, Kutubdia-1, Magnama -1 and Hatia -1 are gas discovery wells in block SS 04. Apart from the
discovery wells, a number of exploratory and development wells have been drilled over the
structures. Coxs Bazar-1 and Reju-1 wells are dry in blck SS 09.

Sangu 1 (Dec, 1995)

WD: 11m.
TD: 3500m. DD: 3500m.
Obj: Middle Miocene, Upper Bhuban clastic reservoir.
Terminated in: Mid. Miocene Upper Bhuban
Seismic Characteristic: Lowering of frequency and high amplitude pack in seismic sections.
Drilling Results:
Reservoir T2 (Mid. - U. Mio.) is gas bearing;
Reservoir T3 (Mid. - U. Mio.) (2622m MD, 2590m TVDss), On DST (2622m-2655m MD) produced
gas @ 31.02MMscfd.
Reservoir Supra T1 (Mid. Mio.) (3006m MD, 2974m TVDss).
Reservoir T1 (M. Mio.) (3151m MD, 3095m TVDss): 3 main gas bearing units (T1A&B, T1C & T1D)
with no GWC. DST (3208.3-3256.3m MD flowed gas @ 50.444 MMscfd.
Status: Gas Well.
Comment: The Sangu Field is characterized by multiple pay sands, compartmentalized by intra
formational and channel fill clays.

W E

Fig.6. Well over Sangu Structure and log signature of Payzone

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 Bangladesh E&P Project overview

Kutubdia 1 (Dec, 1976)

WD: 8.22m.
TD=3658m DD: 3505m.
Obj: to test a seismic structure interpreted as an anticlinal structure
Terminated in Pliocene U. Upper Miocene (Bokabil)
Drilling Results:
Couldnot be drilled to the TD as high pressure encountered at ~3414m MD.
Reservoir (Plio. - U. Mio.) at 2661m 2670m MD (Bokabil Level) flowed gas on DST @
17.9MMCFGD;
Log analysis suggested presence of gas sands at 2918-2938 & 3187-3200 m MD
(Bokabil Level; Plio. U. Mio.) but not tested .
Status: P&A on gas show.

W Kutubdia 1 E

Fig. 7. Well over Kutubdia Structure

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Magnama 1 (Jan, 2008)

WD: <10m
DD: 4003m.
Obj: Primary objective of evaluating the potential for gas in abnormally high pressured sands
beneath those productive at Sangu and elsewhere in the basin.
Terminated in Pliocene U. Upper Miocene (Bokabil)
Drilling Results:
Reservoir (Plio. - U. Mio.) at 2661m 2670m MD (Bokabil Level) flowed gas on DST @
17.9MMCFGD;
Log analysis suggested presence of gas sands at 2918-2938 & 3187-3200 m MD (Bokabil Level;
Plio. U. Mio.) but not tested .
Comment: The well encountered a series of well-developed sands in the deepest section drilled
but these were not gas charged
Status: P&A on gas discovery.

Fig. 8. Seismic Signature of Magnama Prospect

Hatia 1 (2008)
WD: <10m
DD: 3850m
Obj: To probe anticlinal structure.
Terminated in Upper Miocene (Bokabil)
Drilling Results:

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Reservoir Small quantities of gas were produced from a zone between 3764m and 3820m.
Comment: Suspended for possible re-entry at a future date
Status: P&S for re-entry after evaluating up-dip potential

Fig. 9. Seismic Signature of Hatia Prospect

Block SS09

Coxs Bazar-1 (1968)

WD:
DD: 3698 m
Obj: To probe anticlinal structure.
Drilling Results: Dry-P&A

Reju 1 (2000)
WD: 16.5m
DD: 4450m
Obj: To probe a broad, subtle NNW-SSE trending anticlinal structure in Pliocene-Upper Miocene
level
Terminated in Upper Miocene (Bokabil)
Drilling Results:

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Reservoir: Though intersected 1100m of good quality sand with few significant gas shows but no
gas accumulation identified on logs.
Status: P&A without testing

Findings from Available Data and Public Domain Information

The blocks fall at the outer Indo-Burmese wedge within the Chittagong Fold Belt
The NNW-SSE trending faulted detachment folds are asymmetrical to symmetrical and are
bounded on either or both sides by reverse faults
So far, hydrocarbon has been discovered from two horizons viz. Bokabil (Late Miocene) and Upper
Bhuban (Middle Miocene)
These two formations are deposited in a tide-dominated deltaic environment
Gas bearing discrete sand bodies within Megasequence 2 (Bokabil Formation) and Megasequence
1 (Upper Bhuban Formation) are proved reservoirs over the area
Five structures were delineated by the help of subsurface mapping of two surfaces viz. base of
Megasequence 3 (Bokabil Top) and base of Megasequence 2 (Upper Bhuban Top)
Similar high amplitude packs at similar time equivalent of main target sands in Sangu field were
observed in Hatia and Kutubdia prospects
Well Kutubdia has proved gas discovery from lower level of Bokabil and flowed gas during DST. Two
more sand bearing zones were identified within the Bokabil Formation which remains untested
Well Hatia-1 and well Magnama has been declared as gas well (data obtained from public domain)
Coxs Bazar well (drilled in 1968) declared as dry well yet a conversation between OGDC and Shell
personnel reflects presence of poor porosity sands and hydrocarbon show.
Five structures were delineated by the help of subsurface mapping of two surfaces viz. base of
Megasequence 3 (Bokabil Top) and base of Megasequence 2 (Upper Bhuban Top)

Work Program Planned/carried out

Based on the recommendation of the Interpreters, 2D seismic data acquisition plan has been firmed
up over the identified leads. As the blocks extend partially to the land and have less than 10m water
depth close to the land the acquisition has been planned in two mode-Streamer for areas having
water depth greater than 10m and OBC for areas less than 10m water depth. The data acquisition
plan is as as follows:
Streamer Mode
3010 LKM of 2D seismic data has been acquired in Blocks SS 04 and SS 09. The data is
currently under processing.

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SS 04

SE

Uni
Cox

SS 09

Index Total LKM= 3446 Acquired Index

LKM
Planned SS-04 : 410 LKM Seismic Lines. Planned
Seismic Lines
10m Water (Grid=8 X 10) 10m Water
depth Kutubdia : 429 LKM depth contour
contour

Fig. 10. 2D Seismic Data Planned and Acquired in Streamer Mode

Acquisition Plan in OBC Mode

Block Area Grid Volume (LKM) Water Depth
SS 04 Approx. 60% of 8mX10m 900 less than 10m
Block Area
Over Kutubdia 2mX2.5m 711
(K)
lead/prospect
Over Hatia 2mX2.5m 253
lead/prospect

OBC Mode
Block Area Grid Volume (LKM) Water Depth
SS 09 Minor part of 8mX10m 57 Less than 10m

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Block Area
Over Union(U) 2mX2.5m 135
76 lead

Fig. 11. 2D Seismic Data Acquisition Plan in OBC mode in Blocks SS 04 and SS 09

Committed 2D Seismic API: 2700 LKM+2850 LKM=5550 LKM

Present Status
1. Tendering process is in advance stage for acquiring 2D seismic data in OBC mode.

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