Offshore staff

CALGARY, Alberta -- Bengal Energy says it is progressing exploration and drilling of its prospects offshore India.

In June the company signed its second Production Sharing Contract with India’s government, converting the provisional award of offshore block CY-OSN-2009/1 in the Cauvery basin into a formal agreement. Subsidiary company Bengal Energy International is the operator of the 340,000-acre (137,593-ha) block with a 100% working interest.

The company plans to acquire 310 line km (192 mi) of 2D seismic data and 81 sq km (31 sq mi) of 3D seismic during the first four years of the seven-year exploration phase. The company has identified an 18,000-acre (7,284-ha) structure on existing 2D seismic which it plans to evaluate further under its geoscience work program.

Drilling is compulsory thereafter for Bengal to retain the block.

Fiscal terms for the concession include 100% cost recovery and a seven-year tax holiday from the start of commercial production.

08/17/2010