Bangladesh is planning to launch its next international licensing round within the next 12 months, writes Amanda Battersby.

Both offshore and onshore acreage for exploration will be up for grabs in the next bid exercise, according to State Minister for Power, Energy & Mineral Resources, Nasrul Hamid.

“We’ve revised the existing model of the production sharing contract with an increased gas price to attract international oil companies, as the response from them was not positive in the past due to the low gas price,” Nasrul said.

The Cabinet Committee on Economic Affairs (CCEA) recently approved revised PSCs for offshore and onshore blocks that include a higher gas price.

Other amendments to the PSC terms are understood to include removal of the need for a commitment well to be drilled during the initial exploration phase.

Energy Secretary Abu Hena Rahmatul Munim said the government would move to invite foreign players to apply for acreage whilst the long-delayed multi-client 2D seismic survey is finally being acquired.

“We’ll separate some of the blocks for bidding while some will be specified for the multi-client survey on (a) priority basis,” he said.

The CCEA in April gave in-principle approval for the award to a joint venture of TGS and Schlumberger for a multi-client 2D seismic survey.

TGS-Schlumberger will perform the 2D seismic acquisition at its own cost. It will share the data for free with state-owned Petrobangla, while it will also be made available for sale to prospective explorers.

Bangladesh has only awarded four blocks in the last five years.

Compatriots ONGC Videsh and Oil India Limited picked up shallow-water blocks SS-04 and SS-09 and the Santos-KrisEnergy joint venture was awarded shallow-water Block SS-11 from the most recent licensing round in 2014.

South Korea’s Posco Daewoo subsequently secured deep-water Block DS-12 via the Speedy Supply of Power and Energy (Special Provision) Act 2010 that allows acreage to be granted without an open tender.

Meanwhile, Nasrul added that Dhaka is currently in talks with neighbour India on the potential import of pipeline gas.

“But all will depend on the economic viability of the project as the government’s main priority is to ensure uninterrupted energy supply at affordable prices,” Nasrul said.

Bangladesh has been struggling to realise its ambition of adding land-based liquefied natural gas import facilities to complement its existing floating storage and regasification units.

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Bid round 'within the year'