BD lures oil majors with flexible bidding for multiple blocks

International oil companies (IOCs) have the opportunity to bid for any number of blocks in Bangladesh's ongoing offshore bidding round for hydrocarbon exploration in the Bay of Bengal, officials said on Wednesday.
"We are very flexible in the bidding round to allow potential IOCs to participate," said Petrobangla Chairman Zanendra Nath Sarker during the question-and-answer session of a seminar titled 'Bangladesh Offshore Bidding Round 2024' at the Pan Pacific Sonargaon Dhaka on Wednesday.
An IOC or its joint venture can bid for all 24 offshore blocks if it wishes, he said, adding that the ministry would make the final decisions on awarding the blocks after evaluation.
Petrobangla organised the seminar two months after launching the offshore bidding round on March 10. A total of 24 offshore blocks -- 15 in deep water and nine in shallow water -- are on offer in the bidding round, which closes on September 9.
Energy Adviser to the Prime Minister Dr Tawfiq-e-Elahi Chowdhury, Bir Bikram, and State Minister for the Ministry of Power, Energy and Mineral Resources Nasrul Hamid were the chief guest and special guest, respectively, at the seminar.
Around a dozen IOCs, including American Chevron and ExxonMobil, Chinese CNOOC, Italy's ENI SpA, Malaysia's Petronas, Japan's Inpex Corporation and Jogmec, Singapore's KrisEnergy and India's ONGC, are participating in the bidding.
The model production sharing contract (PSC) has been made more competitive with new features on pricing, profitability and incentives, said Tawfiq-e-Elahi Chowdhury.
The Prime Minister's energy advisor also described the South Asian region as currently the most peaceful area, urging IOCs to invest in the country's offshore blocks.
Despite global instability in various regions, South Asia, especially the Bay of Bengal, remains the most peaceful area, Mr Chowdhury added. "There is also a huge market around."
Besides, he turned down any possible impact from the situation in Myanmar on investment decisions.
Seven reputed IOCs have already bought bid documents to take part in the bidding round for offshore hydrocarbon exploration in Bangladesh, State Minister Nasrul Hamid told reporters on the sidelines of the event.
He said the large number of international oil companies attending the event demonstrates their confidence in the Bangladeshi government.
Launching the offshore bidding round is a significant step towards securing the country's energy security and economic prosperity, Mr Hamid said.
Apart from hydrocarbons, Bangladesh's deep sea also has the potential of having various valuable resources, he added. The PSC has been updated to protect the interests of both the country and investors, he said.
The bidding round will conclude in September, and the government has a target to award contracts shortly after so that investors can begin work next year, he said.
It may take around seven to eight years to unlock the potential of the country's offshore blocks, Mr Hamid said.
During the event, Petrobangla's General Manager for exploration Farhana Shaon delivered a presentation on the Bangladesh Offshore Bidding Round 2024.
Chaired by Energy Secretary Md Nurul Alam, the event was also addressed by Chairman of the Parliamentary Standing Committee on the Ministry of Power, Energy and Mineral Resources Md Ziaur Rahman, Petrobangla Director for PSC Md Rafiqul Islam, Managing Director of Gas Transmission Company Ltd (GTCL) Shahnewaz Parvez, Chevron Bangladesh President Eric M Walker and UK-based energy company TGS's senior scientist Elizabeth Gilbard.

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