By Mohamed Basyouni, Ph.D.

The Bay of Bengal Is Back in Play: Bangladesh Opens 26 Offshore Blocks to Global Explorers

In a move that could reshape the future of Bangladesh's energy landscape, the government has launched a new offshore licensing round, inviting International Oil Companies (IOCs) to bid for 26 hydrocarbon exploration blocks across the Bay of Bengal.

• 11 shallow-water blocks 
• 15 deepwater blocks 
• Bid deadline: November 30, 2026

But this is more than just another acreage offering.

After previous licensing rounds struggled to attract investors, Bangladesh has significantly improved its fiscal terms to enhance competitiveness and reduce exploration risk:

• Up to 9 years exploration period (6 + 3 years extension)
• 100% cost recovery for exploration and development costs
• Reduced workers' profit participation contribution from 5% to 1.5%
• Long-term production rights with potential extensions

Why should explorers pay attention?

The Bay of Bengal remains one of the most underexplored offshore regions in Asia, with significant untapped hydrocarbon potential. As countries worldwide seek greater energy security amid geopolitical uncertainty and supply-chain vulnerabilities, frontier basins are once again moving to the forefront of exploration strategies.

The key challenge now is whether the improved PSC terms, combined with the basin's geological promise, can succeed where previous rounds in 2017 and 2024 failed to generate investor interest.

For geoscientists, this is a reminder that some of the most exciting exploration opportunities still lie in frontier basins where geology, economics, and timing finally align.

Will the Bay of Bengal become the next offshore exploration hotspot in South Asia?

KeyFacts Energy: Licensing news   l   News archive: Bangladesh