The Bangladesh government is gearing up for international bidding on March 10, inviting foreign companies to explore oil and gas in the Bay of Bengal. Petrobangla Chairman, Zanendra Nath Sarker, expressed optimism, anticipating active participation from numerous companies in the upcoming bidding round.
Officials from Petrobangla, the state hydrocarbon corporation, revealed that the bid invitation document would soon be published in local newspapers and made available on the websites of the Implementation Monitoring and Evaluation Division (IMED) and Bangladesh’s foreign missions abroad.
To provide detailed insights into the initiative, Petrobangla plans to hold a press conference on March 11, outlining the plan and addressing various aspects of the bidding process.
Prime Minister’s Energy Advisor, Dr. Tawfiq-e-Elahi Chowdhury, conveyed the government’s aim to conclude the bidding within the next six months. Noting the keen interest of foreign companies, he stated that the actual number of participants would be clearer once the bidding concludes.
As part of a comprehensive campaign for the offshore bidding, the government will organize various programs. The decision to invite international bidding was approved on July 26 last year, and the final approval for the draft “Bangladesh Offshore Model Production Sharing Contract (PSC) 2023” was granted recently by the Prime Minister’s Office.
Farhana Sharon, General Manager of Petrobangla, informed that the organization is taking necessary steps to initiate the bidding round, following the PMO’s approval. The new Model PSC aims to make Bangladesh more attractive to international oil companies, with gas prices linked to the international market’s Brent Crude for flexibility.
Under the new plan, gas prices will be offered at 10% of Brent Crude, ensuring a dynamic correlation with international oil prices. British consultancy Wood Mackenzie has been advising the Bangladesh government and Petrobangla on the latest PSC revisions.
With a total of 48 blocks in the country, 26 of them located offshore, Bangladesh’s offshore area remains largely unexplored. The upcoming bidding round is a strategic move to tap into this potential, boost domestic gas production, and meet the growing demand for energy in the country. Stay tuned for further updates on this significant development in Bangladesh’s energy sector.
