Govt approves draft offshore PSC to boost oil, gas exploration
The proposal was placed by the Energy and Mineral Resources Division
The Cabinet Committee on Economic Affairs today (7 May) approved the draft of 'Bangladesh Offshore Model Production Sharing Contract (PSC) 2026' aimed at accelerating offshore oil and gas exploration in the country.
The approval came at a meeting of the committee held at the Secretariat with Finance Minister Amir Khosru Mahmud Chowdhury in the chair.
The proposal was placed by the Energy and Mineral Resources Division, said officials.
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The draft PSC 2026 is expected to serve as the updated framework for engaging international oil and gas companies in offshore exploration activities in Bangladesh's maritime areas in the Bay of Bengal.
Officials said the revised model contract is intended to make the country's offshore energy sector more attractive to foreign investors amid growing demand for energy security and domestic resource exploration.
At the same meeting, the committee also approved in principle of another proposal related to ensuring uninterrupted power supply across the country.
The proposal, submitted by the Power Division, sought inclusion of government-owned power plants, joint venture power projects and imported electricity from India and Nepal, including power from Adani Power Jharkhand, under the subsidy framework.
Officials said the move is aimed at maintaining stable electricity supply by facilitating subsidy support for imported and locally generated power amid rising generation and import costs.
However, the committee approved the proposal partially after discussion.
