Seven international enterprises have acquired tender documents pertaining to oil and gas exploration in the Bay of Bengal, which is a noteworthy milestone for the energy sector. This action is a part of Bangladesh’s continuous efforts to improve its gas supply in the face of a noticeable shortfall that is currently having an effect on the nation’s industries that produce ready-made garments (RMGs).
The deadline for proposal submissions has been extended by three months by Petrobangla, with a new date of 9th December 2024, in an attempt to promote a more competitive bidding climate. According to sources inside Petrobangla, the purpose of the extension is to entice more involvement from international corporations, because the first reaction did not live up to expectations.
Prominent industry participants from other countries have participated in the tender process, including the US behemoths ExxonMobil and Chevron, Malaysia’s Petronas, the joint venture between TGS and Schlumberger in Norway and France, Japan’s Inpex Corporation and Jogmac, China’s Sinuc and Italy’s Eni SPA.
Even with these big companies expressing interest, fewer official submissions than expected have been made. In order to address the nation’s gas supply issues—which now see a demand of 4 billion cubic feet versus a supply of only 270 million cubic feet—experts stress the urgent necessity for exploratory efforts in the Bay of Bengal. This shortage is most noticeable in the RMG industry, where production is hampered by a lack of gas supplies.
Experts have also recommended a number of changes to the Production Sharing Agreement (PSC) in order to better protect national interests and draw in more competitive bids. On 10th March 2024, the first invitation to tender was sent out, requesting offers from 55 of the top oil and gas corporations worldwide. Even while the participation thus far indicates a rise in interest in Bangladesh’s energy sector, officials are still working to guarantee a stronger reaction.
