Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood- File Photo

 
DHAKA, May 24, 2026 (BSS) - Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood today said that new initiatives were taken to attract foreign investment in offshore oil and gas exploration to ensure energy security. 

"The international bidding will attract foreign investors and the country's energy security will be further strengthened through discovery of new offshore oil and gas fields," he said.

Addressing a press conference marking the offshore bidding round at the ministry's conference room, Mahmood said that authorities announced the invitation of an international bid round within the next 100 days.

The government, he said, has been able to resolve a long-standing dispute through the Bidding Round-2026. "The PSC (Production and Sharing Contract) has been finalized by analyzing all international agreements and considering the interests of the country, "he added.

In line with Model PSC-2023, the latest tender was invited in March 2024 where seven international renowned companies, including the Exxon Mobil and two others bought tender documents, but they refrained from submitting tenders due to political situation. So the 2024 bidding round was abandoned, he said.

Based on recommendations in the amendment to the Model PSC, the cost of pipeline from deep sea to land, Workers' Profit Participation Fund (WPPF) has been reduced from 5 percent to 1.5 percent, the minister said. 

Besides, the price of gas has been increased from 10 percent of Brent crude to 11 percent for deep sea and 10.5 percent for shallow, which was fixed $5.6 for shallow and $7.25 for deep sea respectively in Model PSC-2019.

Replying to a query, the minister said, "We would strengthen our Bangladesh Petroleum Exploration & Production Company Ltd (BAPEX) as we asked them to participate in joint venture method with foreign companies."

He further said that many companies were contacting with the government, especially American and Chinese companies, adding, "I believe that this time the tender for oil and gas exploration in the sea will be successful."

Replying to another query, the minister said that the average market price of 5 years will be taken into consideration in determining price of gas and the highest price was recorded at $99 and the lowest at $65. 
"At the same time, the price of the information package has been reduced by 50 percent in PSC-2026," Mahmood said.

State Minister Anindya Islam Amit said that the BNP's election manifesto has given importance to exploring domestic oil and gas, adding, "We want to make the country's energy sector self-reliant in the future. We hope that the bidding round will be successful."

Energy secretary Mohammad Saiful Islam said a committee was formed to find out the reasons why no company submitted tenders in 2024 bidding round. 

"Based on recommendations of that committee, some changes were made after discussing with many people regarding the price of gas, pipeline cost, WPPF and data," he said.

Petrobangla Chairman Md Abdul Mannan, joint secretary Morsheda Ferdous and Petrobangla Director Engineer Mohammad Shoaib, among others, were present.