State oil firm Petrobangla has signed a production sharing contract with South Korea's Posco Daewoo Corp. for deep sea block DS-12 in the Bay of Bengal.
The agreement includes a commitment to carry out 2D and 3D seismic surveys, within the first three years, and then to drill wells in the fourth and fifth years of the PSC.
Posco Daewoo has acreage in neighboring Myanmar, which the firm says is analogous.