As the deadline for submitting bids for offshore gas exploration in the Bay of Bengal approaches, hopes are high for strong participation from international oil companies (IOCs). Petrobangla, which launched the tender in March for 24 offshore blocks, has seen significant interest, with many IOCs purchasing bid documents and making inquiries. The tender offers 15 deep-sea and 9 shallow-water blocks for exploration.
To attract bidders, Petrobangla has made the terms of the production-sharing contracts more favorable, including tax exemptions, no royalty fees, and the ability for firms to export gas after meeting domestic demand. Gas prices will be linked to Brent crude prices, with no capping on the rate.
The bidding process follows a promotional seminar and is part of Bangladesh’s efforts to boost offshore gas exploration, with active PSCs already in place with several IOCs.
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