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. “This round, we have introduced some new aspects like linking gas price with Brent and per year cost recovery at highest 75 percent 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 organised the 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). Intensify efforts to scale up renewable energy technology: Energy Advisor 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. Gov wants AIIB to invest more in energy, power sectors: Nasrul 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. Tawfiq 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’s 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. Read more: Petrobangla invites offshore bidding for oil, gas exploration

Petrobangla, the oil, gas and mineral corporation, has floated the offshore bidding, inviting international oil and gas companies to explore in the Bangladesh maritime area in the Bay of Bengal The tender, named “Oil and Natural Gas Exploration Under Bangladesh Offshore Bidding Round 2024”, 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.  Read more Cabinet body approves draft contract to invite int’l bidding for offshore gas exploration The features of the proposed contract include full repatriation of profit, no signature bonus or royalty, uncapped attractive gas price linked with international marker, oil price to be determined on the basis of the fair market value prevailing in South and Southeast Asia. It entails no duty for equipment and machinery imported for petroleum operations while contractor's corporate income tax liability will be borne by Petrobangla, and bank guarantee for performance of the minimum exploration program. There will be provision for assignment of interest and share-transfer and 100 percent cost recovery with a yearly cap of 75 percent.  The contractor must have a mandatory work program consisting of 2D seismic survey and mandatory purchase of available 2D multi-client seismic data against bidded blocks to get relief from mandatory work obligations proportionately. They will have minimum work obligation in each of the exploration periods while biddable work program commitment over and above the mandatory program. There will be petroleum profit sharing on the basis of R-factor with biddable upper and lower limits and option to sell contractor's share of natural gas in the domestic market to a third party, at a negotiated price, subject to Petrobangla's right of first refusal. Read more: New PSC: Petrobangla awaits final nods to invite int’l bidding for offshore blocks The bidder must ensure carried stake of 10 percent for state-owned Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) for both shallow and deep sea blocks.  The bidders’ qualification criteria include — individual or in case of joint venture at least one member — offshore daily production of at least 15,000 barrel of oil or 150 mmsc of gas. Bidders must have at least one global experience (other than home country) in the oil and gas exploration and production. The Information Package will be available at a cost of US$ 300 or equivalent Bangladeshi taka to the interested bidders/companies. To enable companies to assess the geological prospects of the blocks on offer, Promotional and Data Packages are available on payment basis. Promotional Packages contain Bidding Document, sample seismic sections, gravity, magnetic, geological maps. Companies are required to purchase the Promotional Package in order to qualify for bidding, said the tender.  The purchase price of the Promotional Package is US$ 10,000 or equivalent Bangladeshi taka. Purchase of Data Sales Package is optional. Several Data Sales Packages are available at different prices.  Companies interested in bidding and purchase of Promotional and Data Sales Packages may contact the Director, Production Sharing Contract, Bangladesh Oil, Gas & Mineral Corporation (Petrobangla) Petrocentre, 3 Karan Bazar, Dhaka-1215, said the bidding tender.  Read more: Action against officials of Petrobangla companies if fail to achieve target: Nasrul

Prime Minister's Adviser for Power, Energy and Mineral Resources Dr Tawfiq-E-Elahi Chowdhury has encouraged the US companies, including ExxonMobil, to invest in oil and gas explorations in Bangladesh, particularly the offshore ones. He held a meeting with the senior officials of ExxonMobil, one of the world's largest publicly traded international oil and gas companies, Friday at the Bangladesh Embassy in Washington DC and welcomed their contributions to Bangladesh's energy sector, highlighting the crucial role of the US companies in this area. Also, the adviser focused on the need for investment in building storage facilities for renewable energy in Bangladesh. Having a balanced mix of energy sources is critical for Bangladesh and its development, he said. Read: Bangladesh seeks US investment for regional power distribution Dr Tawfiq acknowledged that the companies like ExxonMobil, which are looking for liquefied natural gas (LNG) businesses in Bangladesh, require guarantying hedges against the price volatilities. He asked ExxonMobil to expedite deep-sea exploration and to invest in upgrading transmission networks and land-based facilities. ExxonMobil expressed a keen interest in working with Bangladesh to support the country's current pace of development and ensure access to energy. Read: US investors: Bangladesh showcases its capital market potential Bangladesh Ambassador to the USA M Shahidul Islam and senior officials from Bangladesh Embassy and ExxonMobil were present at the meeting. Later, a memorandum of understanding (MoU) was signed between Summit Oil and Shipping Co. Ltd and Commonwealth LNG at the Bangladesh Embassy in Washington DC in the presence of Dr Tawfiq. The adviser welcomed the signing of the MoU as an important step towards further expanding the existing energy cooperation between Bangladesh and the US.