That the government is all set to launch an international tender offering 26 of the country's oil and gas blocks on easier terms shows its urgency to make good use of its own energy resources. The exercise to fall back upon its hydrocarbon reserves in the Bay of Bengal has time and again proved futile. At the time of floating a tender in March, 2024, the impression was given that the terms and conditions were so lucrative that global giant oil companies would clamour for bidding for exploration of the offshore blocks on offer. Ironically, not a single company submitted its bids although half a dozen international oil companies purchased auction documents. According to a report carried in this newspaper on Sunday, this time the terms and conditions have been made more lucrative for potential international oil companies (IOCs).
In 2024, a total of 24 offshore blocks ---of which 15 in deep sea and nine in shallow sea ---were on offer for exploration. For long nine months the offer was on board without attracting any IOC. This time two more blocks have been added to raise the number to 26. It is too early to project how interesting the IOCs will find the production sharing contracts. Even if the contract is inked within a reasonable time frame, the exploration job would take quite a long time. If there is a discovery of oil and gas in some of the blocks, extraction of those will involve a long process. By no means will the gas and oil so produced be of any help to obviate the present energy crisis facing the country. This is, however, no argument against floating of tender for exploration of the anticipated gas and oil from offshore reserves. Rather, contrarily the need is more pressing for ensuring the country's future energy security.
Countries such as Bangladesh cannot afford to be perpetually dependent on imported fossil fuels, particularly when the possibility of striking hydrocarbon in the offshore blocks is very high. This country lacks the capacity to explore offshore reserves of gas and oil. Apart from gas and oil, mineral deposits may be there as well. In fact flourishing of the blue economy may not remain a myth but a reality provided that the major oil companies take up the responsibility of conducting search and exploitation. Bangladesh could not help inviting the IOCs to do the job for itself.
This is exactly why this country has to soften the terms and conditions like bringing the worker profit share down from 5.0 per cent to a nominal 1.5 per cent and the flexibility of full profit repatriation. In case of surplus gas and oil production over the domestic need, there is a provision for exporting. To know how appealing the tender documents will be to major IOCs in the world, the Petrobangla or for that matter the government will have to wait a few months after floating the tender. Credit goes to the new government for taking the initiative to expedite the process of launching the tender so early. If the international bidders compete with each other for bidding, it will be a highly positive outcome. Let there be a note of caution that above everything else is the interests of the country. The interests must be preserved at all costs.
