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Bangladesh’s renewed effort to attract foreign investment in offshore oil and gas exploration is both necessary and overdue. With domestic gas production declining, LNG imports becoming more expensive and industries facing persistent energy shortages, the country can no longer afford to leave its offshore potential largely unexplored. The revised Model Offshore PSC 2026 appears to address several concerns raised by international investors. More competitive gas pricing, improved cost recovery, longer exploration periods, reduced data costs and greater operational flexibility could make the latest bidding round more attractive. The government’s decision to organize roadshows in major energy centers is also a welcome step. Yet better contractual terms alone will not guarantee success. The failure of the previous bidding round should serve as a reminder that investors assess more than the financial provisions of a contract. They also consider political stability, regulatory predictability, institutional efficiency, decision-making transparency and the government’s ability to honor long-term commitments. Petrobangla and the relevant ministries need to maintain sustained engagement with potential investors, provide reliable geological information and ensure that approvals and negotiations are handled efficiently. The delay in finalizing the onshore PSC also sends an undesirable signal.

The offshore bidding round is an important opportunity, but it should not be treated as a single event. Attracting credible investors requires a consistent policy framework and institutional preparedness. If Bangladesh can build that confidence, offshore exploration could strengthen energy security and reduce import dependence. If it fails again, the country’s energy crisis—and investors’ doubts—will only deepen.

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