Ministry: Bangladesh Extends Offshore Bidding Deadline to March 2027
Bangladesh has extended the deadline for submitting bids under its Offshore Bidding Round 2026 by four months to 31 March 2027, moving the original 30 November 2026 cutoff date to give international energy firms more time to evaluate exploration blocks, the Ministry of Power, Energy and Mineral Resources announced on 13 October 2026.
Extension Granted After International Oil Company Requests
The Ministry of Power, Energy and Mineral Resources stated that the decision followed recent discussions with several internationally renowned oil companies and formal requests from them regarding the bidding timeline, tbsnews.net reported. Muhammad Arif Sadek, deputy chief information officer of the ministry, disclosed the schedule adjustment through an official press release.
State-run Petrobangla launched the long-awaited bidding round on 24 May 2026. The offering covers 26 hydrocarbon exploration blocks across the Bay of Bengal, comprising 11 shallow-water blocks numbered SS-01 through SS-11 and 15 deep-sea blocks designated DS-08 through DS-22. The Financial Express reported that approximately a dozen international oil companies have purchased information packages so far.
The earlier 2024 offshore bidding round closed without a single bid. Seven international energy companies, including US-based ExxonMobil, bought tender documents, and two firms collected exploration data, but no proposals arrived by the deadline even after a three-month extension. The current administration seeks to avoid repeating that outcome by easing conditions for foreign investors.
Government Revises Production Sharing Contracts to Spur Investment
To spur foreign investment, the government has revised its model production sharing contract. Changes include lowering the mandatory contribution to the Workers’ Profit Participation Fund to 1.5 percent from 5.0 percent, removing signature bonuses and royalties, and permitting full profit repatriation.
Wellhead gas prices are now linked to international Brent crude benchmarks, utilizing floor and ceiling limits calculated from the lowest and highest average Brent prices of the preceding five years. Obligations regarding pipeline construction following commercial discoveries have also been relaxed.
Alongside the deadline extension, the government made data-sale packages more accessible to encourage participation. Petrobangla sells roughly 10 types of data packages at varying prices, and officials indicated plans to lower these rates so interested companies obtain necessary information at nominal costs.
Petrobangla intends to organize roadshows in Houston and Singapore to promote the blocks, supplementing an earlier event held in London after the World Energies Summit.
Energy Security Pressures Driving the Offshore Push
The offshore exploration push aims to tackle growing concerns over domestic energy supplies and long-term security. Bangladesh remains vulnerable to global fuel market disruptions, including conflicts in the Middle East and shipping restrictions through the Strait of Hormuz.
Companies evaluating the 26 blocks can submit proposals for individual areas or the entire offshore region. Bidding documents remain priced at $7,000, with firms such as China National Offshore Oil Corporation and Türkiye’s Turkish Petroleum Corporation among those purchasing documentation.
The newly established deadline of 31 March 2027 provides prospective bidders over five months beyond the previous late-November target to finalize their technical assessments and financial commitments.