Leaving resources untapped damaged Bangladesh’s energy security: Tuku

Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood Tuku today (24 May) said Bangladesh had suffered significant damage from leaving its domestic energy resources unexplored while becoming increasingly dependent on imported fuel.

He made the remarks at a press briefing at the secretariat, where the government formally launched Offshore Bidding Round 2026 for 26 blocks in the Bay of Bengal and announced a significantly revised production sharing contract (PSC) framework designed to attract foreign investment while safeguarding national energy interests.

Under the new Offshore Model PSC 2026, the government has opened bidding for 11 shallow sea blocks and 15 deep sea blocks, with a range of investor-friendly provisions designed to improve competitiveness in the global energy market.

These include permission for third-party gas sales, conditional gas export rights, pipeline tariff mechanisms and enhanced investment protection clauses. 
Officials said the revised framework was designed after earlier bidding rounds failed to attract major international oil and gas companies.

Recalling Bangladesh’s first successful offshore bidding round in 1993 under former prime minister Khaleda Zia, the minister said that initiative had led to major discoveries, including the Bibiyana gas field and the Sangu offshore field.

“International oil companies quickly developed those fields and contributed significantly to meeting the country’s rising gas demand,” he said.

The minister added that the government is also strengthening state-owned explorer Bapex alongside encouraging foreign participation in offshore exploration, which remains capital-intensive and technically complex.

State Minister for Power, Energy and Mineral Resources Aninda Islam Amit said the government’s goal is to achieve greater energy self-sufficiency through accelerated exploration.

“Our election manifesto emphasised energy self-reliance. We want to discover and utilise our own energy potential,” he said.

He added that lessons from previous bidding rounds had been incorporated to address past weaknesses and improve investor confidence.

Under the Offshore Bidding Round 2026, companies may apply for individual blocks, while joint applications will be allowed for two adjacent deep sea blocks under a single contract.

The government has also introduced promotional and data packages for investors, although participation requires purchasing bid documents.

Officials said the revised PSC includes internationally benchmarked fiscal terms, allowing contractors to sell gas to third parties and export under specific conditions, along with mutually agreed pipeline tariff structures based on distance, depth and volume.

It also introduces stabilization and expropriation protection clauses, alongside provisions for commercial discovery bonuses, production incentives, R&D fees, service fees and training grants.