Petrobangla has extended the deadline for submitting bids for offshore oil and gas exploration by four months, moving the final date from November 30, 2026, to March 31, 2027.
The Bangladesh Oil, Gas and Mineral Corporation said on Tuesday that the extension followed discussions with and requests from several international oil companies (IOCs).
Authorities hope the additional time and improved access to data packages will encourage more global energy companies to participate in the current bidding round.
On May 24, Petrobangla invited international tenders for oil and gas exploration across 26 offshore blocks—15 in deep-sea areas and 11 in shallow waters.
The tender document costs $7,000, and bidders can submit proposals for individual blocks or the entire offshore region, Petrobangla Director Engineer Md Shoyeb said.
So far, three major entities, including the Turkish Petroleum Corporation (TPAO) and China National Offshore Oil Corporation (CNOOC), have purchased tender documents.
A previous bidding round launched in March 2024 attracted interest from seven prominent international companies, including US-based ExxonMobil. However, only two firms purchased data packages, and neither ultimately submitted a bid. The round was subsequently cancelled.
Following an evaluation by an inquiry committee formed under the previous interim government, several changes were introduced to the Model Production Sharing Contract (PSC).
The revisions include lower pipeline transportation costs for bringing gas from deep-sea fields to the mainland, a reduction in the Workers' Profit Participation Fund (WPPF) share from 5% to 1.5%, and higher ceiling prices for gas linked to Brent crude oil prices.
Under the revised terms, the ceiling price is set at up to $11 per thousand cubic feet for deep-sea blocks and $10.50 for shallow-water blocks. Under the 2019 PSC, the respective fixed rates were $7.25 and $5.60.
Energy sector analysts say offshore exploration in the Bay of Bengal has remained sluggish despite Bangladesh securing more than 118,813 square kilometres of maritime territory following international verdicts involving Myanmar in 2012 and India in 2014.
Meanwhile, domestic gas production has fallen from a peak of nearly 2,800 million cubic feet per day (MMCFD) to around 1,620 MMCFD, while daily demand is estimated at 4,000 MMCFD and authorised system load exceeds 5,356 MMCFD.
The shortfall between estimated demand and current production is therefore around 2,380 MMCFD, although actual supply gaps may vary depending on system requirements and delivered volumes.
Officials expect the revised contract terms and extended deadline to attract more foreign investment, support offshore exploration and help ease Bangladesh's growing energy supply pressures.