Singapore’s KrisEnergy on January 18 said it relinquished last week block SS-11 offshore Bangladesh and terminated the production sharing contract (PSC) covering the area.

“The relinquishment, which was recommended by the operator and unanimously approved by the joint-venture partners, was pursuant to the terms of the PSC,” the company said. The relinquishment is effective November 14, 2020. 

A $5.5mn bank guarantee, paid by KrisEnergy, has been retained by the Bangladesh authorities. The company has written off the value of the SS-11 asset from its books, it said.

Australia’s Santos and KrisEnergy were awarded the SS-11 block in 2014, each receiving 45% shares. The remaining 10% was given to Bangladesh Petroleum Exploration & Production.

The PSC had an initial five-year term which was subsequently extended by 24 months until March 2021. Santos sold its stake in 2018 to London-based Ophir Energy, which was bought the following year by Indonesia's Medco, which later withdrew from the block.

KrisEnergy remains the operator of the producing Bangora gas field in the Block 9 PSC onshore Bangladesh.