The government is planning a fresh round of bidding for both onshore and offshore gas exploration, with the finalisation of model Production Sharing Contracts (PSCs) targeted within its first 100 days in office.
It aims to complete the bidding process this year and sign final agreements by 2027, officials said.
This initiative follows a stalled attempt in March 2024, when the previous Awami League government announced September as the submission deadline for an offshore bidding round for global companies. This was the first major initiative to exploit natural resources from the sea after maritime border disputes were settled with India in 2012 and with Myanmar in 2014.
However, the process failed to attract bids due to the subsequent political transition in August 2024. The interim administration extended the deadline by three months, yet failed to draw participants. Revised documents prepared by Petrobangla were later sent to the ministry, but the matter was deferred to the elected government.
The plan to finalise the PSCs is part of a broader 100-day roadmap for the sector, unveiled by Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood at an introductory meeting with officials on his first day in office last Wednesday.
Ensuring uninterrupted power supply during Ramadan and the irrigation season is the top priority of the new government, Iqbal Hassan told journalists after the meeting. “We will move ahead with the future plans after that,” he said.
Under the roadmap, the new administration plans to submit proposals to the Planning Commission for drilling at least seven exploratory wells, seven development wells and two workover wells. A development well is drilled in an already known gas field to enhance production while a workover well involves drilling an abandoned well to extract any leftover gas.
By fiscal year 2026–27, it targets an additional 652 million cubic feet of gas per day from 46 wells. Two more drilling rigs are also expected to be added to ongoing exploration.
At present, Bangladesh Petroleum Exploration and Production Company Limited (Bapex) operates five rigs and rents four.
The plan also advances liquified natural gas (LNG) infrastructure. Authorities will review proposals from interested firms and appoint a transaction adviser to implement a land-based LNG terminal under a public-private partnership model.
They will also move ahead with another floating storage and regasification unit (FSRU).
At the same time, decisions will also be coordinated on pipelines to carry gas from Bhola to the mainland and expand transmission networks to handle additional LNG supply.
Reducing system loss, including theft and leakage, is another priority. The government aims to cut losses to 6.25 percent within the first 100 days from the current 6.38 percent, and bring them down to 4 percent by 2030. Officials estimate that existing losses waste about 173 million cubic feet of gas daily, costing Tk 4,094 crore annually.
Separately, a framework is expected to be developed to continue liquefied petroleum gas (LPG) imports through Bangladesh Petroleum Corporation. A pre-feasibility study has been planned to assess government-to-government, PPP and other models for LPG terminals in Chattogram and Cox’s Bazar.
Authorities also plan to appoint an operation and maintenance contractor for the single point mooring facility, designed to transmit fuel oil from deep-sea mother vessels to Eastern Refinery through pipelines. Although commissioned in 2024, the project has yet to become operational due to delays in appointing an operator.
Within the same window, a project director will be appointed for the modernisation and expansion of Eastern Refinery PLC, along with a project management consultancy. The interim government has already approved the long-pending plan to raise refining capacity to 45 lakh tonnes a year from 15 lakh tonnes, with several donors expressing interest in financing the expansion.
The government will also undertake a coordinated programme to complete geological surveys for coal and other mineral resources, including heavy minerals in rivers and offshore areas.
Policy reform forms another pillar of the agenda, with planned amendments to key energy regulations, including the Energy and Power Sector Master Plan. A time-bound action plan will be drawn up to split Titas Gas Transmission and Distribution Company Limited into three entities and consolidate eight subsidiaries under BPC into five companies.
Capacity building is also in focus, with seminars, in-house training programmes for energy stakeholders, and new laboratory facilities planned for the Bangladesh Petroleum Institute.
