US energy firm ConocoPhillips and Ireland-based Tullow Oil have been awarded offshore blocks to explore for gas in the Bay of Bengal, it has been announced.
Two deep-water offshore gas blocks have been leased to ConocoPhillips, and one shallow-water block to Tullow Oil.
 
The companies will be given a production-sharing contract as well as the rights to export the gas as liquefied natural gas, or LNG.
 
Exploration work in the disputed waters could start as early next year, with the companies predicted to spend around $160.5 million (£98 million), using hydrocarbon techniques. Results from the exploration are expected to come within the next five years.
 
India and Burma have both attempted to claim ownership on some parts of the territory, which the firms will avoid exploring.
 
Bidding for the rights began last year and attracted offers from seven companies, including AustraliaÔÇÖs Santos, Korean National Oil Corporation, China's CNOOC and Cypriot firm Comtrack Services.
 
The Bangladeshi government has forecast that the countryÔÇÖs current gas reserves will run out by 2014 to 2015 at the current consumption rate.
BangladeshÔÇÖs proven natural gas reserves total around 15 trillion cubic feet.
Sangu gas field, which is operated by UK firm Cairn Energy, is currently the countryÔÇÖs sole operating offshore gas field.
 
 
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