In a major achievement for Bangladesh’s energy sector, the Petrobangla has fully cleared its external overdue payments two months ahead of the June 30, 2025 deadline, signaling improved financial management and a renewed commitment to energy sector reforms.
The state-owned oil and gas corporation reached the milestone on Wednesday by clearing $44.68 million bills for local gas, condensate and imported LNG, including $34.68 million to Chevron and $10 million to Oman-based LNG supplier, OQ Trading Ltd, the company said in a statement.
At the start of the interim government’s tenure, Petrobangla’s overdue external liabilities stood at $737.46 million (approximately Tk8,702.03 crore). Through coordinated efforts, the company has now paid a total of $3,739.95 million (approximately Tk 45,253.40 crore), covering both overdue and regular payments.
Power and energy adviser Muhammad Fauzul Kabir Khan said the settlement of overdues is expected to put a relief to the company in terms of late payment interest, which previously cost it $54.57 million or nearly Tk654.84 crore.
It will also help improve Bangladesh’s credit rating, while enhancing supplier confidence leading to lower LNG import costs to $11.50 per mmbtu from $17 and reducing risk in the LNG supply chain, he said.
He added the government is also determining to pay external dues of the power sector too by December.
Petrobangla, however, says this success was made possible through strategic teamwork under the guidance of the energy adviser involving Petrobangla, the Energy Division, and other affiliated institutions.
To achieve the success, Petrobangla implemented several strategic steps to manage its finances effectively, including setting monthly recovery targets for gas production and distribution companies, improving collection from end-users.
Additionally, regular inter-ministerial coordination meetings helped recover outstanding gas bills from electricity and fertiliser sectors. The number of banks issuing Standby Letters of Credit (SBLCs) was increased to ensure timely LNG import payments.
The Bangladesh Bank also came into its help with special steps to support foreign currency payments for energy imports.
Tk 2,000 crore loan from the Bangladesh Petroleum Corporation (BPC) also helped ease foreign debt repayments.
Who Was Paid
The cleared dues included payments to International Oil Companies (IOCs) such as Chevron and Tullow; LNG suppliers under long-term contracts (e.g., Qatar Energy, OQT) and the spot market; Floating Storage Regasification Units (FSRUs); The International Islamic Trade Finance Corporation (ITFC), including interest on outstanding loans
In March and April 2025 alone, Petrobangla paid a combined total of $1,445.41 million (approx. Tk17,857.86 crore) to these entities. As of April 30, there are no overdue liabilities remaining.
Reforms Underway
Petrobangla has also launched several forward-looking initiatives such as boosting domestic gas production through exploration and development, reducing system losses in gas transmission and distribution networks and securing more long-term LNG contracts from next year.
At the same time, it will advocate for VAT exemptions on LNG import and gas supply at the consumer level and obtain tax relief from the National Board of Revenue (NBR).