Bangladesh invites bids for oil and gas exploration

DHAKA: Bangladesh invited bids from international companies to explore oil and gas reserves on Sunday, scrambling to ease a fuel crunch as the Middle East war chokes vast quantities of global supply.

The South Asian nation imports 95% of its oil and gas, much of it from the Middle East, where shipments through the crucial Strait of Hormuz have virtually ground to a halt since the war began in late February.

The fuel crunch has prompted long queues at petrol stations and power cuts, with electricity demand outstripping limited generation capacity.

“Fuel is the main driver for development,” Energy Minister Iqbal Hasan Mahmud told a news conference in Dhaka, adding that contracts would be awarded “in the best interest of the country”.

Bangladesh set out its maritime boundaries years ago, but still lags behind neighbouring countries in offshore exploration.

An earlier tender launched in 2024 drew limited interest, prompting the government to revise conditions this time to make them more attractive to international investors.

Hasan Mahmudul Islam, spokesman for state-owned Petrobangla, said the new terms were shaped after consultations with global oil companies who insisted on revising gas pricing among other issues.

“These issues have now been addressed,” he said.

The government has also pledged investment protection and introduced gas pricing linked to Brent crude benchmarks.