Bangladesh is getting ready to launch a fresh international call for bids next week to explore for gas and oil in the Bay of Bengal, indicating a new focus on utilising offshore resources.
A number of prominent international corporate bodies have already expressed their intention to participate in the tender;
After conducting extensive multi-dimensional surveys in the sea, sources within the Energy and Mineral Resources Department and the Bangladesh Oil-Gas-Mineral Resources Corporation (Petrobangla) have confirmed the prospects of potential gas reserves.
Sources said, with a six-month window for participation, multinational oil and gas corporations will have notice of the international tender on March 10.
According to source, the most recent offshore exploration tender was released in 2016, and a new Production Sharing Agreement (PSC), which was completed in 2019, was not put out for tender.
The revised PSC was finally approved by the cabinet in July of last year, after nearly four years, with improved incentives to draw in foreign investment.
With the settlement of maritime boundary disputes with Myanmar in 2014, and India in 2012, Bangladesh now has 15 deep-sea blocks and 11 shallow-sea blocks. Interestingly, no exploratory wells have been drilled in the sea to date, despite the fact that nearby nations India and Myanmar have found gas reserves in the same marine area.
Even in this last era following the conquest of the maritime boundaries, there has been no notable advancement in the exploration of oil and gas in the Bay of Bengal. Three of the foreign companies have left the Bay of Bengal, while four have begun operations.
As per the revised PSC-2019, gas prices are linked to a ten percentile of the current price of Brent crude oil, which guarantees commensurate modifications in line with worldwide market oscillations. Additionally, the profit-sharing agreements between global corporations and Petrobangla have been restructured to allocate the entire revenue generated by gas fields, with Petrobangla expected to receive between 35 and 65 percent of the revenues.
Experts state, this upcoming tender represents a turning point in Bangladesh's energy history, and industry insiders anticipate fierce competition and substantial participation. Stakeholders stress, however, that in order to minimize delays and hasten resource development, quick contract finalization is necessary after tender submission.
Although stakeholders are optimistic about Bangladesh's energy potential, they also emphasize the need to prioritize domestic resource exploration and streamline bureaucratic processes against the backdrop of LNG imports and currency fluctuations.
Expectations are high for a strong response to the tender highlighting the country’s aspirations for energy self-sufficiency and economic prosperity, with interest from major global energy players like ExxonMobil.