DHAKA, May 24, (V7N): Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood today announced that the government has launched strategic new initiatives designed to attract robust foreign investment in offshore oil and gas exploration, a move aimed at securing long-term national energy security.

"The introduction of this international bidding round will successfully draw global investors, significantly strengthening the country's energy framework through the potential discovery of new offshore oil and gas fields," Minister Mahmood stated.

Addressing a press conference at the ministry's conference room to formally mark the launch of the offshore bidding round, Mahmood noted that authorities have committed to completing the formal invitation process for the international bid round within the next 100 days.

The Minister emphasized that the government has successfully resolved prolonged technical and structural disputes through the finalization of the Offshore Bidding Round-2026. "The Production Sharing Contract (PSC) has been rigorously finalized by evaluating complex international agreements while strictly safeguarding national interests," he added.

Reviewing past challenges, Mahmood explained that under the previous Model PSC-2023, a tender process was initiated in March 2024. Although seven globally renowned energy giants—including ExxonMobil and two other majors—purchased the initial tender documents, they ultimately refrained from submitting formal bids due to the prevailing political situation at the time, forcing the abandonment of the 2024 round.

To rectify these past issues, the government has introduced crucial amendments to the Model PSC framework based on expert recommendations:

  • Infrastructure Relief: The cost burden of constructing undersea pipelines stretching from the deep sea to onshore facilities has been substantially adjusted.

  • Labor Fund Optimization: The mandatory corporate contribution to the Workers' Profit Participation Fund (WPPF) has been slashed from 5 percent down to a investor-friendly 1.5 percent.

  • Enhanced Pricing Incentives: Gas pricing has been raised to 11 percent of international Brent crude for deep-sea blocks and 10.5 percent for shallow-sea blocks. For context, these rates were capped at fixed amounts of $7.25 for deep sea and $5.60 for shallow sea under the older Model PSC-2019 framework.

Replying to queries from journalists, the Energy Minister outlined a clear strategy for boosting domestic capabilities. "We are committed to strengthening the Bangladesh Petroleum Exploration & Production Company Ltd (BAPEX). We have explicitly directed them to actively seek out and participate in joint-venture partnerships with incoming foreign oil companies," he said.

Mahmood revealed that multiple global entities, particularly prominent American and Chinese firms, have already been actively communicating with the ministry, expressing confidence that the maritime oil and gas exploration tender will yield successful outcomes this time.

Responding to additional queries regarding market volatility, the Minister clarified that a five-year average market price would serve as the baseline for determining long-term gas valuation, noting that historical pricing during this period peaked at $99 and bottomed out at $65. Furthermore, to lower entry barriers, the government has slashed the purchase price of the official information package by 50 percent for the PSC-2026 round.

State Minister for Power, Energy and Mineral Resources, Anindya Islam Amit, highlighted that the ruling BNP's election manifesto places paramount importance on the exploration and extraction of domestic oil and gas reserves. "Our ultimate objective is to transform Bangladesh's energy sector into a completely self-reliant entity. We are highly optimistic that this revamped bidding round will achieve its targets," Amit said.

Energy Secretary Mohammad Saiful Islam explained that the ministry had previously formed a dedicated probe committee to evaluate why international companies walked away from the 2024 bidding process. "Acting upon the specific recommendations of that committee, we held extensive stakeholder consultations and engineered targeted adjustments regarding gas pricing, pipeline costs, WPPF structures, and data accessibility," Islam noted.

The high-profile briefing was also attended by Petrobangla Chairman Md. Abdul Mannan, Joint Secretary Morsheda Ferdous, and Petrobangla Director Engineer Mohammad Shoaib, among other top energy officials.

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