State-run Petrobangla starts selling bidding documents and data packages for Bangladesh's latest offshore exploration round today (Monday), marking a key step in the government's efforts to attract international oil companies (IOCs) to explore 26 hydrocarbon blocks in the Bay of Bengal amid rising energy demand and declining domestic gas reserves.
Promotional, data sales and basic information packages for the offshore bidding round become available from Petrobangla on a payment basis.
The promotional package includes seismic sections, gravity, magnetic and geological maps, while purchase of the package is mandatory for participation in the bidding process.
The basic information package contains a brochure with geological and related information, the Bangladesh Offshore Model Production Sharing Contract (MPSC) 2026, block maps, the Bangladesh Petroleum Act 1974, and order forms for promotional and data sales packages.
The information package is available at a cost of US$100 or its equivalent in Bangladeshi taka, while the promotional package, which serves as the bidding document, costs US$7,000 or its equivalent in local currency.
These information packages are intended to assist bidders in evaluating the offered blocks.
Purchase of data sales packages is optional and available at different price levels.
Bangladesh launched the offshore bidding round on May 24, offering 26 hydrocarbon blocks to international oil companies for exploration.
Of the 26 blocks, 11 are located in shallow waters and 15 in deep-water areas of the Bay of Bengal, according to Petrobangla documents. The deadline for bid submission is November 30, 2026.
Petrobangla has also enhanced the draft production-sharing contract (PSC) in an effort to attract greater participation from IOCs.
The mandatory contribution to the Workers' Profit Participation Fund (WPPF) has been reduced to 1.5 per cent from the previous 5.0 per cent.
Under the revised terms, IOCs will be granted up to nine years for exploration activities.
The initial exploration period will be six years, with the option to extend it by a further three years.
The contract allows 100 per cent cost recovery for both shallow and deep-water blocks, subject to an annual ceiling of 75 per cent.
The production period has been set at 25 years for gas fields and 20 years for oil fields, with the possibility of a 10-year extension if commercial production continues.
To qualify for participation in the bidding round, operators must have a minimum daily production capacity of 5,000 barrels of oil or 75 million standard cubic feet (MMSCF) of gas for shallow-water blocks.
For deep-water blocks, operators must demonstrate a minimum daily production capacity of 10,000 barrels of oil or 100 MMSCF of gas.
With its domestic gas reserves declining rapidly, the country would require 30 million metric tonnes of liquefied natural gas (LNG) annually by 2041 to meet rising demand, according to official Petrobangla data.
Petrobangla projects that daily gas demand could reach 8 billion cubic feet per day (bcfd) by 2041, significantly higher than the current supply of around 2.74 bcfd recorded on May 25.
Since LNG imports began in 2018, Bangladesh has imported approximately 36.43 million metric tonnes of LNG through 588 cargoes as of March 2026.
Bangladesh's total natural gas supply stood at around 2.74 bcfd as of May 24, including 1.06 bcfd of re-gasified LNG, according to official Petrobangla figures.
Azizjst@yahoo.com
