Bangladesh’s state-run company, Petrobangla, will present a final draft of the model production-sharing contract for offshore exploration to Prime Minister Sheikh Hasina, before submitting it to the Cabinet Committee on Economic Affairs for approval.
This draft offers international oil companies a chance to increase output share and export gas, in an attempt to attract them to explore 15 deep-sea blocks in the Bay of Bengal, as domestic fuel exploration is becoming increasingly urgent. Bangladesh has recently increased its import of liquefied natural gas from global spot markets to feed the country’s energy needs. The drafted PSC includes an increased benefit to attract foreign explorers, linking its gas purchase price with Brent crude, the benchmark used to purchase LNG from the international market.
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