The state-owned enterprise Petrobangla has initiated an international tender for oil and gas exploration in the Bay of Bengal, inviting 55 global companies to explore 24 blocks in the area. Interested parties have a six-month window to submit their tenders, with notifications sent to embassies on the same day as the tender announcement through national newspaper advertisements.
The previous tender for offshore oil and gas exploration dates back to 2016, and although a new Production Sharing Contract (PSC) was signed in 2019, no tender was issued until now. The recent cabinet approval of a new PSC in July last year paved the way for this initiative.
Following resolutions of maritime disputes with India in 2012 and Myanmar in 2014, there are now 15 blocks in deep sea and 11 blocks in shallow sea available for exploration. Notably, American companies ExxonMobil and Chevron have expressed interest in participating.
To attract foreign investment, changes have been introduced in this year's PSC, including a shift from fixed gas prices to pricing aligned with the international market. Additionally, Bangladesh's share will increase with gas production, while the share of multinational companies will decrease. Petrobangla's Chairman, Zanendra Nath Sarker, highlighted that interested companies can purchase data packages to learn about available blocks.
ExxonMobil had previously expressed interest in undersea gas exploration without a tender, prompting discussions that were stalled due to political events. However, with the formation of a new government, discussions have resumed, and ExxonMobil, along with other companies, is now encouraged to participate in the tender process.
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