At least five local and foreign companies have collected information packages for Bangladesh’s latest offshore oil and gas exploration bidding round in the Bay of Bengal, signalling early interest from international investors in the country’s upstream energy sector.
State-owned oil and gas corporation Petrobangla informed the Energy and Mineral Resources Division (EMRD) of the development during a review meeting on the Offshore Bidding Round 2026 held at the Bangladesh Secretariat on Wednesday.
The meeting was chaired by Energy and Mineral Resources Secretary Mohammad Saiful Islam. Petrobangla Chairman Md Abdul Mannan, Petrobangla Director (PSC) Md Shoeb, and other senior officials concerned attended the meeting.
According to officials familiar with the proceedings, Singapore-based upstream exploration company KrisEnergy is among the firms that have obtained the bidding documents.
Norway-headquartered Rystad Energy, a leading independent energy research and business intelligence company, has also purchased the information package. The company is widely recognised for its analysis and consultancy services across the global energy sector.
Another interested party is Beringia Power BD Ltd, a sister concern of US-based Beringia Energy. The company currently operates two heavy fuel oil (HFO)-based power plants in Bangladesh under the Dhaka North and Dhaka South projects, according to official sources.
Japanese firm ONODO Inc. has also collected the offshore bidding documents.
Officials said a fifth company has similarly acquired the information package, although details were not immediately disclosed.
The offshore bidding round, launched last month, is part of Bangladesh’s efforts to attract foreign investment and accelerate exploration activities in its largely untapped offshore areas of the Bay of Bengal, as the country seeks to strengthen long-term energy security and reduce dependence on imported fuels.
During the meeting, the EMRD decided to conduct weekly reviews of the bidding process to monitor progress and address potential challenges.
The EMRD is also planning to organise promotional roadshows both in Bangladesh and abroad in the coming months to attract greater participation from international oil and gas companies, an official who attended the meeting told Just Energy News.
The Petrobangla, formally invited International Oil Companies (IOCs) to bid for 26 offshore oil and gas exploration blocks under the newly updated Bangladesh Offshore Model Production Sharing Contract (MPSC) on May 24, 2026.
Investor-Friendly Terms
Under the new framework, Bangladesh is offering several incentives designed to improve commercial attractiveness for foreign operators in offshore bidding round.
Key contract features including full repatriation of profits; no signature bonus or royalty payments; gas pricing linked to Brent crude benchmarks; 100% cost recovery with an annual cap of 75%; tax liabilities borne by Petrobangla; duty exemptions on imported exploration and production equipment; rights to export contractors’ shares of natural gas, subject to Petrobangla’s first refusal option and stabilisation and expropriation protection clauses for investors.
The government is also allowing operators to negotiate pipeline tariffs and permitting third-party domestic gas sales under agreed conditions.
Industry analysts say the revised terms represent a significant shift from earlier Bangladeshi offshore contracts, which many international firms had considered commercially unattractive compared with competing jurisdictions in Asia and Africa.
A notable feature of the new licensing round is the provision for higher contractor profit shares if initial exploration wells prove dry or non-commercial — a measure intended to offset geological risk in frontier deepwater acreage.
Strategic Push for Energy Security
Bangladesh’s economy has expanded rapidly over the past decade, fuelled by its export-oriented manufacturing sector and growing urbanisation. However, domestic gas production has struggled to keep pace with rising energy consumption.
Natural gas remains the backbone of Bangladesh’s power generation system and industrial base, particularly for the country’s globally significant garment manufacturing industry.
The country has increasingly relied on LNG imports in recent years, exposing it to volatile global energy prices following the Russia-Ukraine conflict and wider geopolitical instability.
Energy and Mineral Resources Division secretary Mohammad Saiful Islam believe successful offshore discoveries could transform Bangladesh’s long-term energy outlook and reduce dependence on imported fuels.
Although several international companies have explored Bangladeshi waters in previous decades, commercial offshore discoveries have remained limited. Energy experts say advances in seismic imaging technology and improved fiscal terms could revive interest in the basin.
Strict Qualification Requirements
The bidding process includes stringent eligibility criteria aimed at ensuring technically experienced operators participate.
For shallow sea blocks, bidders must already operate offshore assets producing at least 5,000 barrels of oil per day or 75 million standard cubic feet of gas daily.
For deep sea blocks, the threshold rises to 10,000 barrels of oil per day or 100 million standard cubic feet of gas daily.
Companies must also demonstrate at least one international exploration and production experience outside their home country, supported by documentary evidence from host governments or regulators.
Joint ventures are permitted, and companies may bid for multiple blocks under a single tender purchase. However, separate applications must be filed for each block, except for contiguous deep sea blocks that may be combined into one contract.
Data Packages Available from June
Petrobangla said a basic information package containing geological data, block maps, legal frameworks, and bidding information will become available from June 1, 2026 for US$100.
A mandatory promotional package, including seismic sections and geological mapping data, will cost US$7,000.
Additional seismic and technical datasets will also be available for purchase at varying price levels.