Bangladesh may have to wait at least two more years to begin offshore oil and gas exploration, as an extension of the bidding deadline is likely to delay the selection of companies and signing of contracts.
The deadline for submitting bids under the 2026 offshore bidding round has been extended to March 31 next year from November 30 this year. After bids are submitted, evaluation, negotiations and contract finalisation could take until late 2027, according to sources familiar with the process.
Even after contracts are signed, exploration cannot begin immediately. Companies will need to mobilise vessels and equipment and wait for favourable weather conditions at sea.
Experts say offshore exploration is largely weather-dependent. The sea is generally calmer between October and March, making it easier to operate exploration vessels. Rough conditions during the monsoon months, from April to September, make offshore operations difficult.
If the contract process continues until late 2027, companies may miss the next exploration season. In that case, work could be pushed back to the following favourable window, meaning exploration is unlikely to begin before October 2028.
The delay comes as domestic gas production continues to decline and Bangladesh becomes increasingly dependent on imported liquefied natural gas (LNG) to meet demand.
The government extended the bidding deadline following requests from potential investors, who sought more time to prepare their proposals. The issue was discussed during a recent London visit by the state minister for energy, who also chairs the Bangladesh Investment Development Authority (BIDA).
The bidding round, launched on May 24 this year, offers 26 blocks in the Bay of Bengal — 11 in shallow waters and 15 in deep waters. The government has revised several terms, including gas pricing and tax concessions, under a new production sharing contract (PSC) to attract foreign companies.
Turkish Petroleum Overseas Company (TPOC) and China National Offshore Oil Corporation (CNOOC) have purchased bidding documents. Several other companies, including Beringia Power Bangladesh, KrisEnergy, Pial Engineering and Construction, Onoda Inc, Rystad Energy and Max Infrastructure, have also purchased data.
A Petrobangla official, speaking on condition of anonymity, said the deadline extension was necessary due to limited interest and requests from companies. The official expressed hope that the process would eventually attract bids, despite the delay.
Energy expert BD Rahmat Ullah said Bangladesh was already years behind in offshore exploration and would need at least five to seven years to obtain gas even if exploration began now.
He warned that the latest extension could push the country further behind, while neighbouring Myanmar was reportedly extracting gas from the same maritime region.
Energy expert Shamsul Alam blamed corruption in the energy sector for the delays, alleging that companies had faced demands for shares from people associated with the previous government, discouraging investment.
