Exploration activities for fuel, oil, and gas in the Bay of Bengal are facing significant delays, primarily due to international companies failing to submit their bids even after the closing date.
Petrobangla officials have not been able to provide a clear timeline for when these activities will resume.
Although the maritime boundary disputes with India and Myanmar were resolved a decade ago, offshore exploration in Bangladesh has been halted for various reasons, while neighboring India and Myanmar continue their exploration efforts at a swift pace.
In 2016, Myanmar announced a major gas discovery in the Thalin-1 block, holding approximately 4.5 trillion cubic feet of gas.
Meanwhile, India has kept up with its exploration activities in the Krishna-Godavari Basin in the Bay of Bengal.
23 out of 26 blocks in Bangladesh's maritime boundary remain inactive
Despite gaining access to large areas of the Bay of Bengal after the resolution of maritime disputes, Bangladesh's exploration has stagnated, with the Energy Department confirming that the disputes with India were settled in 2012 and with Myanmar in 2014.
Out of 26 blocks in Bangladesh's maritime boundary, 23 remain inactive.
The blocks were divided after Bangladesh secured 111,631 square km from the Bay of Bengal, as well as an additional 19,467 square km from India.
These blocks include 15 deep-sea and 11 shallow-sea areas.
While ONGC, an Indian company, is actively exploring two shallow blocks, only three blocks in total are operational, leaving the majority unused.
Gas extraction in Bangladesh has been limited to the Sangu gas field, which was discovered in 1996 by Cairn Energy.
After production ceased in 2013 due to resource depletion, no significant new discoveries have been made.
ONGC has been exploring the SS-4 and SS-9 blocks in the Bay of Bengal but has yet to find substantial oil and gas reserves.
Recently, ONGC requested an additional two years to continue exploration in these blocks.
Four companies initially initiated energy exploration in the Bay of Bengal, but three discontinued their efforts prematurely.
International companies did not respond to multiple calls for tenders
Tenders announced in 2016 saw no interest, and while Petrobangla signed a new Production Sharing Contract (PSC) in 2019, no tenders were called for several years.
In 2023, a new PSC model was introduced to make exploration in the Bay more appealing to international firms, yet even after issuing an invitation to 55 global companies on March 10, 2024, there were no submissions by the September deadline.
Petrobangla extended the deadline to December 9, 2024, but still, no tenders were submitted.
As a result, an investigation committee has been formed to explore the reasons behind the lack of interest from international companies.
This committee will investigate whether there are issues with the current PSC model or other factors deterring firms from participating in offshore exploration in Bangladesh.
What are Petrobangla officials saying?
Md Altaf Hossain, Director (Administration) at Petrobangla, said: “We cannot provide a timeline for when the process will begin. We are investigating the reasons behind the absence of tender submissions despite the deadline passing.”
He further said: “Once the investigation committee completes its report, it will be forwarded to the concerned ministry for a decision.”
Power and Energy Adviser Muhammad Fauzul Kabir Khan also commented, saying: "Petrobangla has reached out to foreign companies to understand why they did not submit their tenders, and we are awaiting their responses."
The lack of international participation continues to delay the progress of oil and gas exploration in Bangladesh, leaving the country lagging behind its neighbors in securing energy resources from the Bay of Bengal.
