The Chamber Court of the Appellate Division on Thursday has ruled that there is currently no legal bar to foreign investment in the exploration of oil, gas and other mineral resources in the deep sea of the Bay of Bengal, staying an earlier High Court order on the matter.
The chamber court fixed June 29 for a hearing before the full bench of the Appellate Division.
The latest order allows the government's offshore bidding round and the participation process of foreign companies to continue for the time being.
Earlier, the High Court had issued a rule and several directives after holding a preliminary hearing on a writ petition challenging the legality of allowing foreign companies to explore oil, gas and mineral resources in the deep sea.
The state subsequently filed an appeal with the Chamber Court against the High Court order.
During the hearing, lawyers for the state argued that the government had invited international tenders for offshore blocks to ensure the country's energy security.
They said deep-sea exploration would be difficult without foreign investment and technological expertise and that the government's ongoing initiatives would be hampered if the High Court order remained in force.
On May 24, the government announced the "Bangladesh Offshore Bidding Round-2026," under which international oil companies (IOCs) were invited to bid for exploration rights in 26 blocks in the Bay of Bengal, including 15 deep-sea and 11 shallow-sea blocks.
To attract foreign investment, the government has also introduced a revised Production Sharing Contract (PSC), tax incentives and other benefits.
According to the Energy and Mineral Resources Division, domestic gas production has been declining steadily, increasing the country's dependence on imported energy.
The government's objective is to strengthen energy security by discovering and developing new gas fields in offshore areas.
With the chamber court's latest order, there is currently no legal obstacle to the participation of foreign companies in Bangladesh's offshore exploration activities. However, the final decision will depend on the outcome of the hearing before the full bench of the Appellate Division on June 29.