Petrobangla has updated the draft of the model production sharing contract (PSC) to launch fresh bidding for both onshore and offshore blocks.
The state-run oil and gas corporation subsequently sent it to the Ministry of Power, Energy and Mineral Resources (MPEMR) for its approval, a senior Petrobangla official told the FE on Sunday.
Petrobangla had earlier submitted a draft of the model contract to the ministry in June 2017, which was then sent back to the corporation for updates, he said.
The planned bidding round for oil and gas exploration would be launched after the final approval from the cabinet committee on economic affairs.
Officials said the newly-formed government would pay more attention to the energy sector than previous years to ensure the country's future energy security.
State minister Nasrul Hamid last week also underlined the need for more work in the energy sector during its current tenure to speed up hydrocarbon exploration.
Petrobangla has picked up recommendations from a New Zealand-based international consultant while drafting the model PSC as several bidding rounds drew lukewarm response from the international oil companies.
Many global players did not take part in the offshore bidding rounds in 2008, 2012 and 2016 only on the grounds of 'inadequate' fiscal terms as an official termed it.
Only a few IOCs took part in the bidding and subsequently signed contracts in 2008 and 2012.
Only one IOC finally submitted the request for proposal (RfP) under the 2016 bidding round and inked contract only for one deep water block out of three that were up for grab.
The US-based oil and gas giant ConocoPhillips shut operations and left exploration rights over two separate deepwater blocks -- DS-08-10 and DS-08-11 -- on December 15, 2014 after carrying out 2D seismic surveys due to what an official says 'poor' fiscal terms.
The same firm in April 2013 also backed out of signing a deal on the shallow-water block -- SS-07 -- as the fiscal terms did not go in its favour.
The US firm was awarded the shallow water block in the 2012 bidding round.
The country currently has a total of 26 offshore blocks and more than a dozen onshore blocks.
Five IOCs have active PSCs either individually or under joint venture to explore three shallow water blocks and one deep water block.
ONGC Videsh Ltd (OVL) and Oil India Ltd (OIL) are jointly exploring shallow water block SS-04 and SS-09.
The joint venture of Santos and Kris Energy is exploring shallow water block SS-11.
POSCO Daewoo Corporation has exploration contract to discover hydrocarbon in deep water block DS-12.
Bangladesh had not offered any onshore oil and gas blocks since 1997.
The country is currently dependent on onshore fields for its entire natural gas output.
The country's overall natural gas production is hovering at around 3,000 million cubic feet per day (mmcfd), including around 300 mmcfd of re-gasified LNG against the demand for over 3,300 mmcfd.
The short supply of natural gas has pushed the government to ration energy supplies to industries, power plants and fertiliser factories for around a decade and pushed the government to start importing expensive LNG (liquefied natural gas) from April 2017.
Azizjst@yahoo.com