The government of Bangladesh has decided to lower the cost of data packages required for offshore oil exploration and postpone the bid submission deadline to increase participation from international oil companies (IOCs) in its upcoming licensing round. This adjustment, revealed by the state-owned Petrobangla, seeks to simplify the bidding process for potential participants.
An official from Petrobangla confirmed that the price reductions will apply to all ten existing data package categories currently available to IOCs. While the exact percentage cuts were not disclosed, the official stated the changes are designed to ease financial burdens for companies assessing the 26 offshore blocks available for exploration. The blocks include both shallow-water and deep-water zones located across the Bay of Bengal.
Originally scheduled for November 30, 2026, the bid deadline may now be extended by at least two months. Petrobangla has already organized one roadshow in London and plans additional events in Houston and Singapore to generate global interest in the opportunity. To date, approximately a dozen IOCs have purchased the information package, indicating early engagement.
Read Also: Delhi Police Detain Protesters Demanding Poll Chief’s Resignation
Petrobangla launched the offshore bidding round on May 24 with revised contractual terms intended to address past challenges. Previous offshore tenders had struggled to attract major players, prompting adjustments such as reducing the mandatory Workers’ Profit Participation Fund contribution from 5% to 1.5%, removing signature bonuses, and tying gas pricing to international Brent crude benchmarks. These modifications aim to create a more favorable investment environment.
The decision follows broader efforts to secure energy supplies amid rising geopolitical risks, including disruptions from the ongoing Middle East conflict and shipping challenges through the Strait of Hormuz. The 26 offshore blocks, 11 in shallow waters and 15 in deep waters, represent a significant opportunity for exploration in the region.
Petrobangla will now prepare a formal proposal for submission to the Energy and Mineral Resources Division under the Ministry of Power, Energy and Mineral Resources to approve the changes before implementation.
Leave a Reply