Category: Energy and Power

Mirana Mahrukh, Additional Secretary of the Economic Relations Division (ERD), has been appointed as the new Secretary of the Power Division.

the appointment was announced in a noti?cation issued recently by the Senior Appointments Wing1 of the Ministry of Public Administration. The order, signed by Senior Assistant Secretary Jeti Pru on behalf of the President, stated that the appointment would take immediate effect in the public interest. Mirana Mahrukh is a member of the 18th batch of the Bangladesh Civil Service (BCS). She obtained both her bachelor’s and master’s degrees in Public Administration from University of Dhaka and later earned an MBA from Victoria University in Melbourne. During her career, she served in various positions in ?eld administration and government ministries.

Bangladesh does not yet have suf?cient geological evidence to conclusively classify its offshore territory in the Bay of Bengal as a hydrocarbon-rich province by global standards. However, the geological and geophysical data already available should be systematically analyzed, reprocessed, and packaged to present a compelling investment case to international oil companies (IOCs). At the same time, policymakers must recognize that offshore oil and gas exploration is a capital-intensive, highrisk undertaking that requires advanced technology, specialized expertise, and substantial ?nancial resources.

as a result, there is no realistic alternative to attracting foreign investment and international expertise if Bangladesh hopes to unlock the hydrocarbon potential of its offshore areas.

in an interview with Mollah Amzad Hossain, Editor of Energy and Power, Professor Dr. Md.

anwar Hossain Bhuiyan, Department of Geology at the University of Dhaka, shared his views on Bangladesh’s Offshore Bidding Round 2026. Bangladesh has formally launched the Offshore Bidding Round 2026 following the ?nalization of the Offshore Model PSC 2026. How do you assess the country’s preparations to attract investment for offshore oil and gas exploration? There is no alternative to exploring, developing, and utilizing domestic energy resources if Bangladesh is to ensure long-term energy security. From that perspective, the launch of the Offshore Bidding Round 2026 is a welcome initiative. However, Bangladesh has fallen signi?cantly behind in offshore exploration.

a bidding round was previously announced in 2024 under a model PSC developed with the support of international consultants.

although seven IOCs purchased bid documents, none submitted bids due largely to the changed political environment at the time.

the Ministry of Power, Energy, and Mineral Resources subsequently reviewed the reasons behind the lack of participation. Based on those ?ndings, Petrobangla updated the Offshore Model PSC 2026. From both ?nancial and technical perspectives, the revised PSC is attractive for investors. However, IOCs do not make highrisk, multi-billion-dollar offshore investments based solely on contractual terms.

a stable economic, social, and political environment is equally important.

in my view, the current government is committed to creating such an environment.

are the changes introduced in the Offshore Model PSC 2026 suf?cient to attract IOCs? The revised PSC is certainly more attractive from both commercial and technical standpoints. Gas pricing has been linked to Brent crude oil prices, while a ?oor and ceiling mechanism has been introduced to provide greater price certainty.

the PSC also allows investors to recover pipeline infrastructure costs and earn wheeling charges after a gas discovery. Furthermore, the WPPF rate has been reduced from 5 percent to 1.5 percent. Despite these improvements, there remains a signi?cant challenge. Major IOCs typically invest in offshore regions where geological evidence suggests the possibility of discovering reserves in the range of 30 to 50 trillion cubic feet (TCF).

at present, there is insuf?cient data to indicate that Bangladesh’s offshore areas contain reserves of that magnitude. Moreover, successful discoveries tend to attract additional investment. Bangladesh lacks such a landmark offshore success story.

therefore, investment risks in the country’s offshore sector remain comparatively high. Petrobangla possesses substantial offshore data, while third-party companies have also conducted 2D seismic surveys and developed data packages. What more should be done to present Bangladesh’s offshore potential effectively? Compared to onshore areas, offshore data may be limited, but it is certainly not insigni?cant.

Mohammed Amirul Haque has been elected president of the Chittagong Chamber of Commerce and Industry (CCCI), cementing the dominance of the United Business Forum after its clean sweep in the biennial polls.

the chamber’s directors sealed the leadership decision at their recent presidium meeting at the chamber of?ce in Agrabad World Trade Center in the presence of the Chamber Election Board.

the newly elected directors unanimously formed the presidium, with Amirul from the Town Association Trade Group chosen as president Mr. Haque also the President of LPG Operators Association of Bangladesh (LOAB).

State Minister for Power, Energy and Mineral Resources Anindya Islam Amit has said initiatives have been taken to install solar power in the government buildings of 21 district in the country. Solar panels will be installed in of?ce of Deputy Commissioners, Police Supers and hospitals in 21 districts within two to three months, he said while virtually inaugurating installation of rooftop solar power at Zobaida Korim Jute Mills Limited in Faridpur recently. He urged the private companies to follow the government saying Zobaida Korim Jute Mill can be a model for other private companies. Power Secretary Minara Mahrukh, Additional Secretary and Chairman of West Zone Power Distribution Company Limited Noor Ahmed were present.

the State Minister also participated in a views exchange meeting with of?cials. JA Solar International Ltd, China has installed the solar power with a capacity to generate 4.29 MW power. According to project, SMA Solar Technology AG, China (Model: STP-11060) will be installed with Net Meter facilities.

The Bangladesh Energy Regulatory Commission (BERC) has announced a major reduction in aviation fuel prices for both domestic and international ?ights, effective from midnight.

under the latest adjustment, jet fuel prices for domestic ?ights have been reduced by Tk 39.57 per liter, bringing the new rate down to Tk 165.88 from the previous Tk 205.45 per liter. For international routes, the duty- and VAT-free jet fuel price for both local and foreign airlines has been cut to $1.0823 per liter from $1.34. BERC reviews and adjusts aviation fuel prices every month in line with changes in the international oil market.

this is the second reduction in jet fuel prices in May alone.

earlier on May 7, BERC reduced domestic jet fuel prices from Tk 227.08 to Tk 205.45 per liter, while international rates were lowered from $1.48 to $1.34 per liter.

Persistent high in?ation, investment stagnation and energy crunch are severely affecting economic stability and escalating the cost of doing business, economists and business leaders have said on revelation by a new parameter.

they observed owing to the failure of traditional indices in capturing immediate economic transitions, evidence-based decisionmaking at the policy level is becoming signi?cantly constrained.

the observations were made at a seminar titled ‘Economic Position Index (EPI): Quarterly Macroeconomic State of Dhaka’, organized by Dhaka Chamber of Commerce and Industry (DCCI) at its auditorium recently.

they have suggested expanding the newly launched EPI beyond overconcentrated Dhaka to make it a nationally effective policy tool

The government has a plan to generate 5,000 megawatts of electricity from solar panels over the next ?ve years, Iqbal Hasan Mahmood, the minister for power, energy and mineral resources, said recently. ‘Immediately after taking of?ce, Prime Minister Tarique Rahman raised the issue of solar power in his second cabinet meeting and asked us for a concrete plan on how to increase solar power generation,’ he said pointing out the government’s move towards establishing solar power.

the minister made these remarks while speaking as the chief guest at a seminar titled, ‘Roadmap Towards 10,000 Megawatts Solar Power, 2030,’ at the Institution of Engineers, Bangladesh (IEB), marking its 78th founding anniversary.

engineer Mohammad Riazul Islam, president of the IEB and chairman of the Rajdhani Unnayan Kartripakkha (RAJUK), chaired the event.

Since independence, Petrobangla has accumulated approximately 66,000 line-kilometers of vintage seismic data, a limited amount of 3D seismic data, drilling information from exploration wells, and around 12,000 linekilometers of recently acquired multiclient seismic survey data. However, what is urgently needed is the reprocessing of these datasets and the development of a comprehensive hydrocarbon prospectivity model. This is not something Petrobangla can accomplish alone.

a more effective approach would be to engage internationally recognized ?rms for advanced data interpretation and jointly prepare a modern, integrated data package.

although this would require additional investment, it could signi?cantly enhance the attractiveness of Bangladesh’s offshore acreage and improve investor con?dence. Bangladesh’s greatest exploration success came from the 1993 bidding round.

although many companies showed interest in the 1997 round, the country failed to capitalize on that momentum. How do you evaluate Bangladesh’s PSC process over the years? That observation is correct. However, I would prefer to focus speci?cally on offshore exploration.

the reality is that Bangladesh has not yet been able to convincingly demonstrate the offshore resource potential of the Bay of Bengal to prospective investors. Offshore success remains largely limited to the Sangu gas ?eld, which has already been depleted and abandoned. The Kutubdia discovery has also not reached commercial production.

as a result, despite repeated efforts by successive governments to attract investment, offshore exploration activity has remained limited. Several internationally renowned companies, including Totalgaz and ConocoPhillips, conducted exploration under PSCs and achieved some technical success. However, they ultimately withdrew because the projects failed to meet their commercial expectations. The companies sought adjustments in gas pricing terms that could have improved project economics and facilitated the conversion of contingent resources into commercially viable reserves.

those proposals were not accepted, leading to their departure.

another challenge is the shortage of petroleum economists in Bangladesh. While the country has capable geologists and petroleum engineers, it lacks suf?cient expertise in petroleum economics and commercial negotiations. Consequently, some of the concerns raised by international companies may not have been adequately evaluated.

this has contributed to Bangladesh’s slow progress in offshore exploration. What should Bangladesh do to ensure a successful outcome from the Offshore Bidding Round 2026? Success will depend on adopting the right strategy. Bangladesh must make the best possible use of its existing geological and geophysical data, reprocess and reinterpret those datasets using modern technologies, and present offshore prospects in a compelling and scienti?cally credible manner.

at the same time, maintaining policy stability, ensuring transparency, and providing a predictable investment environment will be essential.

if Bangladesh can effectively package its offshore potential and communicate it to investors, the likelihood of attracting quality international oil companies will increase substantially. The current bidding round represents an important opportunity, but success will require both technical preparation and strategic engagement with the global petroleum industry.

the 1993 bidding round could be described as a hybrid approach, where roadshows were followed by negotiations with selected companies before contracts were signed under the Model PSC.

this time, Bangladesh is seeking bids directly through a formal bidding process. How attractive do you think this will be for IOCs? The answer is not straightforward. The 1993 PSC round led to signi?cant successes both onshore and offshore. While offshore production from the Sangu gas ?eld has already been depleted, three onshore ?elds developed under PSC arrangements currently contribute nearly 60 percent of Bangladesh’s domestic gas supply.

the key issue is that Bangladesh needs offshore investment to strengthen its long-term energy security.

therefore, while safeguarding national interests and considering geopolitical realities, the government should keep all possible avenues open to attract investment under the Offshore Model PSC framework. From that perspective, I see no reason why some of thestrategies used in the 1993 bidding round could not be considered again if they help secure investment.

the Energy Division has indicated that a series of international roadshows will be organized to promote the Offshore Bidding Round 2026. What preparations should Bangladesh undertake to make these roadshows effective? The primary objective of any roadshow is to attract investors. We should recognize that Bangladesh has developed considerable capabilities for onshore oil and gas exploration. However, when it comes to offshore exploration, the country lacks the necessary investment capacity, advanced technology, and specialized manpower required for such high-risk ventures.

therefore, the sole purpose of these roadshows should be to attract IOCs. Many international consulting and advisory ?rms specialize in investor outreach and promotion. Bangladesh can engage such ?rms to help bring investors to the table and create a favorable environment. However, the responsibility for convincing investors ultimately rests with Bangladesh itself. Petrobangla should prepare and present a comprehensive and attractive data package based on the geological and geophysical information already available for Bangladesh’s offshore areas in the Bay of Bengal.

at the same time, investors must be provided with clear information regarding the investment climate, political stability, regulatory framework, and legal protections.

the government may also consider involving academics, civil society representatives, and media professionals alongside its own of?cials in promoting Bangladesh’s offshore potential.

a coordinated strategy that builds investor con?dence and trust will be essential if Bangladesh hopes to attract the large-scale and highrisk investments required for offshore exploration.

india and Myanmar have achieved several signi?cant discoveries in the Bay of Bengal. Based on the available data, how would you assess Bangladesh’s hydrocarbon prospects? One important point needs to be understood. Bangladesh’s offshore geology is not directly comparable to India’s east coast.

the geological setting and hydrocarbon systems are fundamentally different.

although Bangladesh shares some geological similarities with Myanmar, there are also substantial differences. Therefore, discoveries in India or Myanmar do not automatically imply that similar resources exist in Bangladesh’s offshore territory.

one of Bangladesh’s biggest weaknesses is the lack of detailed geological and geophysical studies. Moreover, the data that we do possess has not yet been presented effectively to potential investors. We have some additional information from exploration activities conducted in ?ve or six offshore blocks, but much of the offshore area remains largely unexplored.

iOCs are fully aware of these limitations. Consequently, they understand that any investment in Bangladesh’s offshore sector will require them to undertake detailed surveys using their own capital, technology, and expertise. Global offshore exploration statistics indicate that in deepwater areas, only about one out of every ten exploration wells results in a commercial discovery. However, when discoveries are made, the reserves are often very large.

in Bangladesh’s case, the probability of ?nding giant reserves appears comparatively lower. Given these uncertainties, what should Bangladesh’s strategy be? Bangladesh should keep every possible option open for attracting offshore investment. Some experts believe the Bay of Bengal may contain between 20 and 30 trillion cubic feet (TCF) of gas resources. However, until comprehensive data acquisition, interpretation, and drilling activities are completed, no one can make de?nitive claims.

that is why there is no alternative to attracting investment for offshore exploration.

it is important to remember that in petroleum exploration, even a negative result can be valuable.

as the saying goes, ‘No ?nding is good ?nding.’ Even if commercially viable reserves are not discovered, the information gained will help Bangladesh make informed decisions regarding its future energy security strategy.

at the same time, policymakers should recognize that even if investment is secured today, it may take 10 to 15 years before Bangladesh can fully determine the hydrocarbon potential of its offshore areas

Bangladesh’s energy debate usually centers on declining reserves, rising LNG imports, and rising electricity and fuel oil costs. While these concerns are real, another critical issue receives far less public attention: the permanent loss of natural gas underground due to inadequate and inef?cient reservoir management. Most people think gas is only ‘lost’ when it is burned, ?ared, or leaked from pipelines and surface facilities.

instead, it happens silently within gas reservoirs when ?elds are produced without proper long-term engineering planning. When reservoirs are not properly managed or technical challenges are not addressed in time, signi?cant volumes of gas can become technically unrecoverable, remaining underground forever. For a country heavily dependent on natural gas for domestic, infrastructural, and industrial needs, this is not merely a technical matter; it is a question of national energy security and economic protection.

the Silent Loss of Gas Beneath the Ground The discovery of gas is only the ?rst step.

ef?cient gas recovery from the ?eld requires strong engineering management throughout the eld’s life.

a portion of the discovered gas can remain unrecoverable if reservoirs are not managed carefully.

this can happen for several reasons: Poorly placed wells or improper well design may leave parts of the gas reservoir untouched. ? Advancing underground water can trap pockets of gas if it is not properly monitored and managed. ? Delayed installation of compression facilities can cause production to decline too early, reducing the amount of gas that can ultimately be recovered.

over time, these problems can leave large volumes of gas permanently trapped underground, with serious long-term consequences.

a simple example shows how gas can be lost underground. Consider a gas ?eld with 200 billion cubic feet (BCF) of gas. With proper management, about 90 percent of this gas, which is around 180 BCF, can be produced. But if the ?eld is poorly managed – such as allowing sand or water to enter the well, ignoring unexplained drops in production, delaying use of compression, or improper monitoring – the recovery may fall to about 50 percent of recoverable reserves or even less.

in that case, only about 100 BCF of gas would be produced, and nearly 80 BCF could remain trapped underground forever. Losing such volumes of gas from multiple ?elds due to poor reservoir management would lead to signi?canteconomic loss for the country. Preventing such losses is precisely what petroleum engineers are trained to do. One of their key roles is to anticipate potential problems before they become critical.

through reservoir monitoring, modeling, and production analysis, petroleum engineers can identify early warning signs and take timely action by adjusting production strategies, improving design, or installing necessary facilities to ensure that the maximum amount of gas is ultimately recovered from the reservoir.

the Oil and Gas Sector is Entering a Sensitive and Challenging Stage Bangladesh’s gas sector is no longer in the stage of easy production. Many major ?elds are now mature and face increasing challenges, mostly of a technical nature.

at this stage, even small mistakes, negligence, or wrong decisions can have large consequences.

in mature ?elds, careful engineering management becomes more important than ever. Globally, new oil and gas discoveries are becoming increasingly complex. Future reservoirs are often deeper, smaller, and technically more challenging to develop and extract. Developing such resources requires careful planning, risk assessment, economic evaluation, and continuous monitoring – precisely these are areas where petroleum engineers provide essential expertise. Companies such as Saudi Aramco, Abu Dhabi National Oil Company, and Qatar Energy have achieved high recovery rates through advanced reservoir monitoring, detailed ?eld modeling, and careful long-term reservoir management.

their heavy investment in petroleum engineering expertise demonstrates that maximizing recovery depends on strong and continuous petroleum engineering oversight. Petroleum Engineers Protect Both Resources and Revenue Petroleum engineers are not only technical specialists; they are also trained to evaluate the economic implications of engineering decisions.

every gas development involves a series of critical decisions that rely heavily on petroleum engineering analysis -from exploration to production.

these decisions require balancing technical performance and long-term economic assessment. Petroleum engineers evaluate reservoir behavior, production potential, and development feasibility to guide key choices in different phases of the whole process, such as: Exploration stage: Assessing reservoir potential, drilling risks, and estimating recoverable resources to determine whether a discovery can be commercially viable. Field development planning: Determining when and how a newly discovered eld should be developed, based on engineering calculations of reservoir performance, production forecasts, and economic feasibility. Production strategy: Deciding whether production should be accelerated or moderated to protect long-term recovery. Facility planning: Determining the appropriate timing for installing a compressor or other surface facilities. Well management: Evaluating whether new wells should be drilled or existing wells optimized. Resource management: Deciding whether to prioritize developing smaller new ?elds or maximizing recovery from existing ones. Without rigorous engineering evaluation, such decisions can lead to lower recovery, higher costs, and reduced long-term value of national gas resources. Strategic Decisions Can No Longer Wait The involvement of petroleum engineers in Bangladesh’s gas sector remains extremely limited compared to global standards.

one major reason is that, for many years, local universities in the country did not produce petroleum engineers. However, a positive change has recently begun -over the past few years, several of Bangladesh’s own universities have started producing petroleum engineering graduates.

to ensure the country’s energy security, several strategic measures must now be taken: First, petroleum engineers must be given an active and institutional role in decision-making, planning, and management of gas elds. Second, regular reservoir monitoring and scienti?c analysis must be strengthened in every gas eld.

third, production management must be strengthened through the timely development and modernization of essential technical infrastructure. Fourth, skilled and talented petroleum engineering graduates from local universities should be effectively placed and utilized in the gas sector without any bias. Bangladesh’s energy future will not depend solely on new gas discoveries or LNG imports. Rather, true energy security will depend on how ef?ciently existing gas ?elds and related resources are managed. With proper reservoir management, it is possible to recover up to 80-90 percent of the gas underground.

therefore, utilizing petroleum engineering expertise at the center of planning and management in the gas sector is no longer optional – it is an essential strategic decision for ensuring Bangladesh’s long-term energy security and economic stability

Prime Minister Tarique Rahman recently testdrove locally manufactured electric vehicles (EVs) and praised the initiative, assuring full government support for the country’s growing EV industry. He visited an exhibition of electric vehicles organized at his of?ce in Tejgaon by Bangladesh Auto Industries Limited, according to Deputy Press Secretary Hasan Shiplu. During the visit, Tarique Rahman personally drove a sports utility vehicle (SUV) and a covered van manufactured by the company. Company representatives informed the Prime Minister that Bangladesh Auto Industries Limited is the country’s ?rst electric vehicle manufacturer. They said the vehicles are fully battery-powered, environmentally friendly, and require no fuel oil, while electricity costs remain comparatively low.