Dhaka: Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood today announced new initiatives aimed at attracting foreign investment in offshore oil and gas exploration to bolster the country's energy security. "The international bidding will attract foreign investors and the country's energy security will be further strengthened through discovery of new offshore oil and gas fields," Mahmood stated.
According to Bangladesh Sangbad Sangstha, Mahmood addressed a press conference marking the offshore bidding round at the ministry's conference room, revealing that authorities have announced an international bid round to be initiated within the next 100 days. This move follows the resolution of a long-standing dispute through Bidding Round-2026, where the Production and Sharing Contract (PSC) was finalized by analyzing international agreements and considering national interests.
The latest tender invitation, aligned with Model PSC-2023, was issued in March 2024. Seven renowned international companies, including Exxon Mobil, purchased tender documents. However, due to political circumstances, these companies refrained from submitting tenders, leading to the abandonment of the 2024 bidding round.
Minister Mahmood highlighted amendments to the Model PSC, which include reducing the Workers' Profit Participation Fund (WPPF) from 5 percent to 1.5 percent and adjusting gas prices from 10 percent of Brent crude to 11 percent for deep sea and 10.5 percent for shallow regions. Additionally, the price of the information package has been halved in PSC-2026.
Responding to queries, Mahmood emphasized strengthening the Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) through joint ventures with foreign companies. He noted that several American and Chinese firms have expressed interest, fostering optimism for a successful tender round. The minister also mentioned that the average market price over five years, ranging from $65 to $99, will influence gas pricing.
State Minister Anindya Islam Amit underscored the BNP's election manifesto, which prioritizes domestic oil and gas exploration to make the energy sector self-reliant. Energy Secretary Mohammad Saiful Islam revealed that a committee had been formed to investigate the lack of tender submissions in 2024, leading to policy adjustments in gas pricing, pipeline costs, WPPF, and data.
The press conference was attended by Petrobangla Chairman Md Abdul Mannan, Joint Secretary Morsheda Ferdous, and Petrobangla Director Engineer Mohammad Shoaib, among others.