Bangladesh Offers Sweetened Terms in Offshore Tender

Bangladesh launched an international tender on Sunday for oil and gas exploration in 26 offshore blocks in the Bay of Bengal, offering more attractive terms to foreign companies as it seeks to tackle worsening domestic gas shortages and reduce reliance on costly LNG imports.

The South Asian country has faced declining gas reserves and rising dependence on imported liquefied natural gas (LNG) while energy prices remain vulnerable to geopolitical tensions and supply disruptions linked to the Iran war.

State-run Petrobangla published the tender documents on its website under the revised Bangladesh Offshore Model Production Sharing Contract (PSC) 2026, setting November 30 as the deadline for bid submissions.

“We have made the terms more attractive than before to encourage participation from international companies,” Energy Minister Iqbal Hassan Mahmood told a press conference.

“The offshore tender is part of the government’s action plan to increase domestic gas supply and reduce import dependence.”

Under the revised PSC, companies will relinquish only 20% of exploration acreage during the exploration phase, compared with 50% previously.

Mandatory contributions to the workers’ welfare fund have also been reduced to 1.5% from 5%.

Officials hope the revised terms will revive investor interest after Bangladesh’s previous offshore licensing round