55 companies invited in global bid for Bangladesh offshore exploration

Prime Minister’s Energy Advisor Dr Tawfiq-e-Elahi Chowdhury has said that the international bidding for offshore oil and gas exploration will draw a huge response.

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“This round, we have introduced some new aspects like linking gas price with Brent and per year cost recovery at the highest 75% to make the bidding more attractive,” he told reporters at a press conference at Petrobangla headquarters in Dhaka on Monday.

The Energy and Mineral Resources Division organized a press conference to brief about the “Oil and Natural Gas Exploration Under Bangladesh Offshore Bidding Round 2024”, for which Petrobangla invited international oil and gas companies (IOCs).

State Minister for Power, Energy and Mineral Resources Nasrul Hamid, Energy Secretary Md Nurul Alam and Petrobangla Chairman Zanendra Nath Sarker also addressed the event.

The tender notice was published in local newspapers and websites of concerned government entities including Bangladeshi missions abroad on Sunday giving six months’ time until September 9, 2024, for submission of the bids.

As per the floated tender, a total of 24 offshore blocks — of which nine are shallow blocks — and 15 deep sea blocks are available for the bidding round.

The nine shallow sea blocks are SS-01, 02, 03, 05, 06, 07, 08, 10 and 11) and 15 deep sea blocks are DS-08, 09, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 and 22.

The bidder, singly or in association with other companies, can bid for one or more blocks.

Contracts will be signed with the successful bidders in line with the Bangladesh Offshore Model Production Sharing Contract 2023, said the tender.

Dr Tawfiq-e-Elahi Chowdhury informed that so far, the bidding invitation was sent to 55 IOCs who have contacted the government as potential bidders.

He, however, averted a question on the geopolitics that might appear to be a factor in the participation of the IOCs in the bidding round.

Nasrul Hamid said it is an open bidding and any company eligible can bid for any block. He said a pre-bid meeting will be arranged after Ramadan for the interested bidders.

Source: UNB