ছবি: Photo: Collected
State-owned Petrobangla is intensifying its efforts to explore oil and gas in the hill tracts, signaling a major shift in the nation’s energy strategy. A new draft of the Production Sharing Contract (PSC), last updated nearly three decades ago, has been prepared to facilitate exploration in the region. Petrobangla aims to finalize this draft by appointing consultants within December, paving the way for international tenders by March next year. The initial focus is set on Block 22B, a promising area in the hilly terrain.
Exploration Plans for Block 22B
Block 22B encompasses parts of Bandarban's Thanchi, Ruma, Alikadam, and Cox's Bazar’s Chakaria, along with segments of Anwara and Kaptai. According to Petrobangla officials, this region holds significant potential for gas reserves. Neighboring India has already discovered substantial gas deposits near the border area of this block. Despite earlier attempts by the Bangladesh Petroleum Exploration and Production Company Limited (BAPEX) to explore the hills, progress stalled due to a lack of resources. Experts believe that engaging foreign oil and gas companies could accelerate success in this region.
Dr. Badrul Imam, a geologist and energy expert, emphasized the untapped potential in Bangladesh’s onshore regions, particularly in the southern and hilly areas. Citing India’s Tripura state as an example, where 11 gas fields have been discovered from 160 drilled wells, he highlighted the stark contrast with Bangladesh’s limited exploration in the adjacent hilly tracts. He welcomed Petrobangla’s move to invite international tenders, suggesting it could bring much-needed investment and expertise.
Draft PSC and Consultant Appointment
Petrobangla’s new PSC draft reflects key amendments to attract international oil companies (IOCs). The last update to the onshore PSC framework was made in 1997, which lacked competitive incentives for foreign players. The current draft is expected to address these shortcomings. The consultancy appointment process is nearing completion, and officials aim to launch the tendering process by February or March 2024.
Speaking about the initiative, Petrobangla’s Director of Production Sharing Contract, Engineer Md. Rafiqul Islam, said, “We have prepared a draft PSC for onshore gas exploration. The consultant appointment process is progressing rapidly and will conclude by December. Once finalized, international tenders will follow in early 2024.”
Challenges and Strategic Importance
Bangladesh’s onshore gas exploration has been sluggish, with limited success over the past decade. Many existing gas fields have reached maturity, with only a handful still producing significant amounts. Meanwhile, reliance on expensive imported liquefied natural gas (LNG) continues to strain the national energy budget. In this context, reinvigorating domestic gas exploration is critical.
BAPEX Managing Director Md. Shoeb acknowledged the need for rapid action, stating, “The consultant appointment for onshore gas exploration through Petrobangla is in its final stages. Quick implementation will add momentum to the exploration process.”
Past attempts to explore the hill tracts have faced multiple obstacles, including limited capacity and regulatory delays. Notably, a 2011 study by Colorado-based consultancy Gustavson Associates identified specific areas in Bandarban, such as Barkal, Belaichhari, Changutang, and Matamuhuri, as highly prospective for gas reserves. However, these insights have yet to be fully acted upon.
A Promising Future for Gas Exploration
If successful, the new PSC initiative could mark a turning point in Bangladesh’s energy landscape. Engaging foreign companies with advanced technologies and resources would boost exploration efforts and help uncover the untapped potential in the hill tracts. Petrobangla’s proactive measures, combined with BAPEX’s involvement, underscore the government’s commitment to enhancing domestic energy security.
The upcoming international tenders represent a crucial step forward, offering hope for a sustainable energy future in Bangladesh.
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