Bangladesh invites bids for 24 offshore blocks
The government of Bangladesh in association with state energy company Petrobangla has invited bids for 24 offshore oil and gas blocks, it said on March 10. The bidding process encompasses nine shallow sea blocks and 15 deep-sea blocks.
Successful bidders will enter into contracts based on the Bangladesh Offshore Model Production Sharing Contract 2023. The last date for submission of bids is September 9.
To qualify for bidding, participants must meet specific conditions set by the government. This includes demonstrating offshore daily production capabilities of at least 15,000 barrels of oil or 150mn ft3. Additionally, bidders are required to have global experience in oil and gas exploration and production, excluding their home country. Also, the bidder must ensure carried stake of 10% for state-owned Bangladesh Petroleum Exploration and Production Company.
Bangladesh has been grappling with a gas shortage impacting power generation and industrial activities. The decision to explore and exploit offshore oil and gas reserves is an initiative to mitigate these challenges and enhance the country's energy security.
In addition to the offshore exploration initiative, Bangladesh has actively pursued long-term LNG agreements to diversify its energy sources.
It recently signed a long-term LNG deal with QatarEnergy Trading, the LNG trading arm of QatarEnergy. In June last year, Bangladesh signed a deal with Oman. Earlier in the year, Petrobangla got approval to sign long-term deals with Summit Oil and Shipping Company and Excelerate Energy.
Bangladesh already has existing LNG import deals with Oman Trading International and Qatargas. The country has two floating LNG terminals, each with a capacity of 500 million ft3/day, located in Maheshkhali. One of these terminals is operated by Summit, while the other is managed by Excelerate Energy.