The power sector of Bangladesh witnessed a substantial increase in generation capacity in last 10 years, but the cost of generation went up due to higher dependence on expensive imported fuel oil. The situation emerged with the less availability of own natural gas amid failure to discover new resources. There is hardly any success in exploration over the last 19 years. Only about 2 Tcf new gas reserve has been added over this period. The remaining recoverable reserve is only 11 Tcf against the present annual consumption of around 1 Tcf. The existing and potential resources of the country are not infinite.

It would be prudent to immediately go for fresh round of PSC bidding for both offshore and onshore with data available and engage contractor simultaneously for multi-client survey. The government should also immediately advise Petrobangla to update the model PSC for onshore exploration in the western region, high-pressure zones and deeper prospects with a target to invite bids as soon as possible. The resources to be discovered through this process will enhance the reserve base, which is essential for an emerging economy like Bangladesh.

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