No bids submitted for offshore oil, gas exploration

Offshore oil and gas exploration efforts in the Bay of Bengal have ended up in disappointment, with no companies submitting bids, despite two years of preparation and outreach.

Seven companies had purchased the tender documents, but none had submitted their proposals by the 1pm deadline on Monday.

“No company has submitted a bid. We’ve formed a committee to review the situation and understand why no bids were received. We will discuss the next steps with the government,” Petrobangla Chairman Zanendra Nath Sarker told bdnews24.com

Bangladesh had called for tenders to select international contractors for offshore oil and gas exploration after a gap of six years.

The previous attempt at offshore bidding in 2019 was also cancelled.

That year, Petrobangla had prepared a draft policy [Model PSC] for oil and gas exploration and partnership agreements.

However, the proposal was deemed unattractive, and no tenders were called.

After further analysis, a new Model PSC was introduced in 2023.

The revised policy was designed to make offshore mineral exploration in the Bay of Bengal more attractive to international energy companies, to boost investment in the sector.

To attract companies, Bangladesh showcased offshore gas exploration opportunities at investment roadshows abroad.

Seminars and discussions were also held domestically, and the deadline for tender submissions was extended.