New framework aims to attract foreign investment in Bay of Bengal energy sector
DHAKA, May 7, 2026 — The government has approved the draft of the Bangladesh Offshore Model Production Sharing Contract (PSC) 2026, marking a significant step toward expanding offshore oil and gas exploration in the Bay of Bengal. Report UNB
The approval came on Thursday at a meeting of the Cabinet Committee on Economic Affairs held at the Secretariat, chaired by Finance Minister Amir Khosru Mahmud Chowdhury.
The proposal was submitted by the Energy and Mineral Resources Division.
Officials said the revised PSC framework is designed to attract greater participation from international oil and gas companies by offering an updated contractual structure for offshore exploration activities in Bangladesh’s maritime territory.
The new model agreement is expected to strengthen the country’s efforts to improve energy security through increased domestic resource exploration, particularly as Bangladesh seeks to reduce dependence on imported fuel.
Government officials noted that the updated framework aims to make Bangladesh’s offshore sector more competitive and investment-friendly amid rising global interest in energy exploration and regional energy security.
During the same meeting, the committee also approved in principle another proposal related to maintaining uninterrupted electricity supply across the country.
The proposal, submitted by the Power Division, sought to bring government-owned power plants, joint venture projects, and imported electricity—including power purchased from Adani Power in Jharkhand, as well as imports from India and Nepal—under the government subsidy framework.
Officials said the move is intended to help stabilize the power sector by supporting rising generation and import costs while ensuring reliable electricity supply.
However, after discussion, the committee approved the proposal only partially.
