International consultants will be able to submit expressions of interest (EoIs) until November 21 with intent to upgrade the country's existing offshore model production-sharing contract (MPSC).
The state-run Petrobangla is receiving EoIs to shortlist the consultants in order to pick a potential one to update the terms and conditions of the MPSC-2019.
The move is part of making the MPSC more attractive, competitive and internationally acceptable for oil and gas exploration and development.
The existing model PSCs for both onshore and offshore were prepared in 2018 and was approved in 2019.
But the deadly pandemic after 2019 has changed the global economy, especially the energy sector, where the demand for LNG (liquefied natural gas) soared rapidly.
Updating the MPSC is imperative to lure interested IOCs in the post-Covid period, says a senior Petrobangla official justifying the need for its upgrade.
Officials said the government had a plan to float an international tender to carry out hydrocarbon exploration at offshore fields on 15 September 2020.
The announcement to this end was planned for 17 March 2020 in celebration of the birth centenary of Bangabandhu Sheikh Mujibur Rahman.
The deadline for receiving bids from the IOCs (international oil companies) was planned for 10 March 2021 and the signing of the PSCs with the bid-winning IOCs by May 26.
Petrobangla was to launch the bidding round offering offshore blocks adjacent to gas-rich blocks of Myanmar, said the Petrobangla official.
Under the current MPSC, gas price for deep-sea blocks was set at $7.26 per MMBtu (million British thermal unit), up by 11.69 per cent from the previous MPSC for the same.
The offshore gas price was set to increase every year by 1.5 per cent from the date of first gas production, according to the model PSC.
Petrobangla had floated the last bidding round in 2012 through which shallow-water blocks and one deep-water block were awarded to contractors.
Ironically, not a single exploratory well has so far been drilled.
Bangladesh has not offered any onshore oil and gas block since 1997.
Currently, it has a total of 26 open blocks in offshore area-11 in shallow water and 15 in deep water.
The country's natural gas output now hovers 3,237-million cubic feet per day (mmcfd), of which 845 mmcfd is regasified imported LNG, according to Petrobangla statistics as on November 01.
The entire local output comes from onshore gas fields.
Currently, four IOCs have active PSCs either individually or under a joint venture to explore three shallow-water blocks for offshore exploration.
ONGC Videsh Ltd and Oil India Ltd are jointly exploring shallow-sea (SS) blocks 04 and 09.
US firm Chevron is active in exploring and producing natural gas in three onshore gas fields under onshore blocks 12, 13 and 14.
Singapore's KrisEnergy is producing gas from Bangora field.
