Bangladesh Petroleum Exploration Company is set to initiate first-ever oil and gas exploration in offshore Magnama under a joint venture with Santos. The cabinet committee on economic affairs approved this month inking of a sales and purchase agreement with the JV. Bangladesh Petroleum Exploration and Production Company Ltd. earlier inked a binding offer agreement with Santos under which it will carry out offshore drilling jointly with Santos at Magnama structure. Bapex and Santos are currently mobilising rigs and all necessary equipment to commence hydrocarbon exploration at the offshore site. Both the firms are readying works like engagement of drilling contractors and purchase of drilling equipment to begin exploration. The Santos-Bapex joint venture also eyes to initiate drilling of Magnama-2 well. The Magnama structure is located within block 16 areas where the now-shut Sangu well is located. The water depth of Magnama is up to 20 metres from nearby onshore Kutubdia Island. Bapex will pay Santos $16.50 million as 'sunk cost' for involvement with the joint venture to explore the offshore well. Some exploration activities worth around $92.30 million were carried out at Magnama, located under the block -16 area so far. Santos has got majority stake of 51% in the JV while Bapex will have 49% stake. The drilling cost has been estimated at $26 million, where Bapex will bear $12.70 million. Bapex will have the opportunity to carry out oil and gas exploration in offshore for the first time under the JV with Santos.