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Bangladesh Launches Offshore Exploration Tender With Improved Terms

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The Bangladesh government on Sunday opened an international bidding round for offshore oil and gas exploration across 11 shallow water and 15 deep water blocks in the Bay of Bengal, with improved terms to encourage foreign investor participation.

Energy Minister Iqbal Hasan Mahmood reportedly said in a press conference that the tender is in line with the government's strategy to boost domestic supplies and limit the country's reliance on imported fuel.

Bangladesh, which heavily relies on imported liquefied natural gas, has been affected by supply disruptions and price surges since the start of the US-Iran war.

In March 2024, the previous licensing round failed to attract any bid, Reuters reported, with a later review revealing concerns over gas pricing, pipeline construction costs and profit-sharing obligations as the deterrents.

In the new bid invitation published by the government and state-owned Petrobangla, improved terms in the production-sharing contract include an "attractive wellhead gas price linked to international marker crude Brent" and a "mutually agreed pipeline tariff".

Gas prices were previously linked to high-sulfur fuel oil.

The amended framework would also allow third-party gas sales, gas exports, and special investment protection clauses, according to Mahmood, as cited by local news agency Bonik Barta.

An information package for prospective bidders will be released on June 1, while bids can be submitted through Nov. 30, according to the published bid invitation.

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