Petrobangla termed the Cairn letter "outrageous" and said the demand of the company was a "clear violation" of the production sharing contract
The UK Cairn Energy gas company has warned Bangladesh's Petrobangla it would not carry out further exploration in the Magnama structure in the Bay if Petrobangla did not increase the gas price.
The UK company considers it "uneconomical" to sell gas to Petrobangla from Magnama for the price agreed in the current contract as gas exploration and production cost increased manifold in recent years.
The company asked Petrobangla either to increase gas price or to allow it to sell its share of 50 per cent gas of the total production to a third party in Bangladesh.
Cairn said if Petrobangla did not agree to the company proposal by August 15, it would not go for a planned 3D seismic survey.
Petrobangla officials termed the Cairn letter "outrageous" and said the demand of the company was a "clear violation" of the production sharing contract.