Santos and KrisEnergy are seeking to farm-out up to equity in the SS-11 shallow water offshore block in Bay of Bengal.   In early September 2018, Santos reported that the sale of its producing Asian assets, as part of a wider asset sale including SS-11, to Ophir Energy, had been completed.  In late August 2018, Ophir Energy Plc announced that in a general meeting held on 20 August 2018, the acquisition of southeast Asian non-core assets from Santos for aggregated cash considerations of USD 205 million pre-working capital adjustments, was approved by its shareholders. However, the company also stated that transaction was conditional subject to this approval from shareholders but completion in respect to exploration assets, such as SS-11 block is also conditional upon, amongst other things, regulatory and certain consents, and respective pre-emption regimes. Ophir envisages a completion date for exploration assets to be in the first half of 2019.  In early-August 2018, Ophir Energy Plc announced that the UK Listing Authority as of 3 August 2018 approved a class 1 circular in relation to the transaction of southeast Asian non-core Assets from Santos.    It was announced in early May 2018 that Santos had entered into an agreement to sell a number of non-core Asian assets, including SS-11 in Bangladesh, to Ophir Energy Plc.Â  The deal remains subject to a number of approvals, but is expected to complete in 2H 2018.    Santos and KrisEnergy each hold 45% stake in SS-11 block with Santos as the operator, with Bangladesh Exploration and Petroleum Exploration Company Ltd (BAPEX) holding a 10% carried interest. The Production Sharing Contract (PSC) for the award of SS-11 block was signed on 12 March 2014. The block, which covers 4,475 sq km area, was offered under the Bangladesh Offshore Bidding Round 2012, launched from 9 December 2012 to 29 July 2013 for shallow water blocks.    On 21 August 2015, Santos had announced a strategic review with the aim of addressing the share price fall issue. The company is considering a range of options including asset sales, structured finance transactions, company restructurings, capital markets transactions and other strategic alternatives. It is understood that the company was looking for fast-track sale of its assets, including outside Bangladesh.    Companies interested in this opportunity can contact:    Chris Luxton  Tel: +618 8116 7192  Email: chris.luxton@santos.com   Â     Mike Whibley  Email: mike.whibley@krisenergy.com    Â     Background Information    Santos-KrisEnergy JV has committed to drill one exploration well in SS-11 block, carry out 1,876 line km 2D and 300 sq km 3D seismic during the initial five year exploration period and is expected to spend around USD 32 million for this work. The JV will provide a bank guarantee of USD 15 million. The five year Phase I will be followed by a three year second exploration period.     SS-11, originally reported to cover an area of 4.622 sq km, straddles the margins of the Bengal Basin and Rakhine Basin. Portion of the block was under Block 18 (Block 17 & 18 PSC) last operated by Okland International LDC. This PSC was awarded in 1997 and was relinquished in 2011. Companies who have farmed-in to the block were Tullow, Total and PTTEP.Â  No wells have been drilled within the SS-11 block boundaries. Within the vicinity of the block, BODC 2 and BODC 3 dry holes were drilled by Bengal Oil Development Corp. from 1976 to 1977.
Santos and KrisEnergy are seeking to farm-out up to equity in the SS-11 shallow water offshore block in Bay of Bengal. In early September 2018, Santos reported that the sale of its producing Asian assets, as part of a wider asset sale including SS-11, to Ophir Energy, had been completed. 