Bangladesh’s offshore oil and gas exploration activities are going to gain new momentum. Despite previous efforts, there has been no visible progress in this work. However, the new government has taken responsibility and emphasized oil and gas exploration in the Bay of Bengal.
As part of this, the Ministry of Power, Energy and Mineral Resources is going to officially invite international tenders at the Secretariat on Sunday. The tender will be published for energy exploration in 26 offshore blocks in the sea. Officials of the Energy Department and Bangladesh Oil, Gas and Mineral Resources Corporation (Petrobangla) told The Bangladesh Pratidin that this time the tender conditions have been made much more investment-friendly and attractive than before to attract foreign multinational companies in gas exploration. Although more than a decade has passed since the conquest of Bangladesh’s maritime borders, no success has been achieved in offshore energy exploration.
However, neighboring India, Myanmar and Pakistan have come a long way in discovering energy resources in the sea. During the ousted Awami League government, a tender was called for energy exploration in the Bay of Bengal on March 10, 2024. 55 international companies were invited to participate. Although the deadline for submitting tenders was set until September of that year, the interim government extended the deadline by three months to December 9. During this period, several companies from different countries, including the United States, Japan, China, and India, purchased multi-dimensional survey data in the sea, but none participated in the tender.
According to Petrobangla sources, the sale of promotional packages for the international tender will start on June 1. The deadline for submitting tenders is November 30. During this period, interested foreign companies will be able to participate in the tender by collecting survey data and technical data from the Bay of Bengal. Road shows, press conferences, and communication with various embassies at home and abroad are planned to be organized to attract international investors.
Petrobangla's Production Sharing Contract (PSC) director engineer Md. Shoaib told The Bangladesh Pratidin on Saturday, "We are going to invite international tenders for offshore oil and gas exploration on Sunday. We have already received the approval of the ministry in this regard. Power and Energy Minister Iqbal Hasan Mahmud Tuku will give details on this matter. This time, the PSC has been made more attractive. We are expecting a good response from more multinational companies than last time. This time, we have increased the price of oil and added a new pipeline tariff along with it. More flexibility has been brought in terms of previous experience. We will start selling tenders on the first working day after the Eid holidays. We plan to organize a road show to promote the tender. Then we will organize everything as directed by the ministry."
According to sources in the Energy Department, many changes have been made to the 'Bangladesh Offshore Model Production Sharing Contract (PSC) 2026', which is in line with the long-standing demands of international companies. During the exploration stage, 50 percent of the area will not have to be given up like before. Now, the companies will only give up 20 percent of the area. A major change has also been made in the gas pricing system.
Earlier, gas prices were set based on the price of high-sulfur oil, but now it will be aligned with Brent crude oil. According to the new structure, the price of deep-sea gas will be set at up to 11 percent of the three-month average Brent price.
According to the sources from Petrobangla and the Department of Energy and Mineral Resources, all the necessary preparations for offshore oil and gas exploration have already been completed. Energy expert Dr. Ijaz Hossain said, "The reason why it failed even after calling for international tenders last time has certainly been found by those concerned at Petrobangla. They should know what will get bids here and what will not. We have to take practical steps in this regard. Now those who are working on gas exploration in the sea will not want to come here unless they get good profits. Large gas fields have been found in three-four places in the world. It should be clearly stated at what price we will buy gas from these companies. Since this is deep offshore, there are several problems in bringing gas from this place. These must have been examined by the concerned parties. This is the third time that tenders are being invited. If it is not successful this time too, it will be very bad for the country. Multinational companies in the world now have many options for gas exploration. These companies will not be very interested in working in a small area like ours. Therefore, we have to move forward keeping all the issues in mind."
Bd-pratidin English/Lutful Hoque
