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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.

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

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.

New data from the Organisation for Economic Co-operation and Development (OECD) indicates that climate ?nance provided and mobilised by developed countries increased to USD 132.8 billion in 2023 and USD 136.7 billion in 2024. While this suggests continued growth, campaigners argue that the headline ?gures hide deeper structural problems.

according to critics, the OECD’s accounting approach has long been seen as overstating actual climate ?nance delivered.

as a result, the reported increase may be signi?cantly smaller under stricter and more transparent accounting rules. At the same time, many developed countries are reducing overall development aid budgets, raising concerns that climate ?nance is increasingly being drawn from shrinking aid pools rather than representing genuinely new and additional funding.

Bangladesh has launched its most ambitious offshore energy initiative in years, offering 26 oil and gas blocks in the Bay of Bengal under a revamped and investorfriendly Offshore Bidding Round 2026. With domestic gas reserves declining and dependence on imported fuel rising, the government is betting that improved contract terms, stronger investor protections, and aggressive international outreach can ?nally unlock the country’s largely unexplored offshore potential. Yet attractive ?scal terms alone may not be enough.

the real test will be whether Bangladesh can convince international oil companies that its offshore prospects, investment climate, and political stability justify the billions of dollars and years of risk required for deepwater exploration.

through a public notice and press conference, the Energy and Mineral Resources Division has formally announced November 30, 2026, as the deadline for bid submissions.

at the launch event, Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmood said that although the previous government frequently highlighted Bangladesh’s maritime boundary victories, it failed to take effective steps to explore and develop the Bay of Bengal’s hydrocarbon resources. While efforts were made toward the end of its tenure to attract offshore investment, no investors ultimately participated.

the minister said the BNP-led government is working to ensure a favorable investment climate. He recalled that Bangladesh’s 1993 bidding round under former Prime Minister Khaleda Zia attracted signi?cant international investment and led to major oil and gas discoveries.

according to him, ?elds developed under those PSC arrangements still account for around 60 percent of the country’s domestic gas production.

the Energy Division says a new Offshore Model Production Sharing Contract (PSC) 2026 has been approved after extensive revisions. Compared with the Offshore Model PSC 2023, the new version is designed to be more investorfriendly while protecting national interests.

of?cials hope the revised terms will encourage international oil companies (IOCs) to participate in offshore exploration. Petrobangla noted that during the previous bidding round, the submission deadline was extended until December 2024.

although seven IOCs purchased tender documents and two companies bought data packages, no bids were ultimately submitted. Subsequent consultations with international companies, industry experts, and consultants identi?ed several reasons behind the failure.

these included concerns over gas pricing, pipeline tariffs, the Workers’ Pro?t Participation Fund (WPPF), limited geological data, and the high cost of acquiring data packages. However, investors’ lack of con?dence in the political environment at the time was widely viewed as the most signi?cant factor.

in response, the government revised the PSC framework and secured approval for the new model. Petrobangla has already begun distributing bid notices to IOCs and has made the Offshore Model PSC 2026 publicly available on its website.

a separate publication highlighting Bangladesh’s hydrocarbon potential, gas market, and broader energy sector is also being prepared. Key Features of Offshore Model PSC 2026 Of?cials from Petrobangla and the Energy Division say the revised contract re?ects international best practicesand incorporates provisions commonly used in leading hydrocarbon-producing countries. Gas Pricing Natural gas prices will be linked to international Brent crude oil prices. ? Shallow-water blocks: 10.5 percent of Brent crude price ? Deepwater blocks: 11 percent of Brent crude price To protect both investors and the government from extreme market volatility, ?oor and ceiling price mechanisms have been introduced. Deepwater Pipeline Tariff A new provision allows Petrobangla to pay transportation tariffs for petroleum moved through privately constructed subsea pipelines.

the measure is intended to improve project economics for offshore developments requiring major infrastructure investments. Reduced WPPF Rate The Ministry of Labour and Employment has reduced the WPPF contribution rate for fully foreign-owned energy companies from 5 percent to 1.5 percent. Lower Data Costs To encourage participation, the cost of geological and geophysical data packages has been reduced by 50 percent.

exploration Period The total exploration period will be nine years: ? Initial exploration phase: six years ? Four years for geological, geophysical, and seismic surveys ? Two years for drilling ? Subsequent exploration period: three years Only seismic surveys are mandatory under the minimum work program, while additional seismic and drilling commitments will be determined through bidding. Bank Guarantees Required guarantees include: ? Geological and geophysical work: US$3 million ? Drilling phase: US$20 million ? Subsequent exploration phase: US$20 million Cost Recovery and Pro?t Sharing Investors will be allowed to recover up to 100 percent of exploration and development costs, subject to an annual ceiling of 75 percent of production revenue. Government pro?t-sharing limits are: ? 40-65 percent for shallow-water blocks. ? 35-60 percent for deepwater blocks. For shallow offshore blocks, a 10 percent carried interest for BAPEX will be mandatory.

tax Bene?ts Contractors will enjoy duty-free import facilities for equipment and materials used in exploration and development. Petrobangla will continue to bear contractors’ corporate income tax obligations.

oil Pricing Any oil discovered will be priced according to prevailing fair market prices in South and Southeast Asia. Gas Sales and Export Rights Contractors may sell their share of gas to third parties in the domestic market, subject to Petrobangla’s right of ?rst refusal.

if domestic buyers are unavailable, exports will be permitted.

investment Protection The PSC includes stabilization and anti-expropriation clauses to ensure investor protection. Fees and Bonuses ? Commercial discovery bonus: US$3 million ? Production bonuses: ? Gas: US$500,000 to US$6 million ? Oil: US$500,000 to US$4 million Research and Development Contributions Contractors will contribute: ? US$0.10 per barrel of pro?t oil ? US$0.004 per MCF of pro?t gas Service Fees Annual contract service fees: ? Exploration and development phase: US$200,000 ? Production phase: US$300,000 Training Grants Annual training contributions: ? Exploration and development phase: US$150,000 ? Production phase: US$200,000 Production Period ? Gas ?elds: 25 years ? Oil ?elds: 20 years These terms may be extended by an additional 10 years if commercialproduction continues.

of?cials believe the revised Offshore Model PSC 2026 will signi?cantly improve investor con?dence and attract international energy companies to explore the Bay of Bengal’s untapped oil and gas resources, helping strengthen Bangladesh’s long-term energy security. Model PSC and Investor Perspectives Industry experts generally view the new PSC as technically and commercially stronger than previous versions. Professor Dr.

anwar Hossain Bhuiyan of the Department of Geology at the University of Dhaka described the revised PSC as balanced and attractive for both investors and the state. However, he emphasized that Bangladesh still lacks a major offshore discovery that could signi?cantly boost investor con?dence.

according to him, Petrobangla possesses approximately 66,000 linekilometers of seismic data, but much of it has not been adequately reprocessed or interpreted. He believes improving and packaging this data should be a priority. Dr. Bhuiyan also noted that Bangladesh’s offshore geology may not support giant discoveries of 30-50 trillion cubic feet (TCF), which many major IOCs seek when evaluating investment opportunities. Beyond contractual terms, investors will also assess political stability, the investment climate, and geopolitical considerations.

energy expert and former BUET Dean Professor Ijaz Hossain welcomed the new PSC but questioned whether it would be suf?cient to attract the world’s largest energy companies.

in his view, Bangladesh should focus aggressively on attracting capable midsized international operators while highlighting the country’s investment potential and political stability. Former BAPEX Managing Director Murtaza Ahmed Faruque said the PSC is substantially improved but argued that additional incentives should have been offered for joint ventures involving BAPEX and local companies.

according to him, greater domestic participation would help Bangladesh develop technical expertise and operational capacity in offshore exploration over the long term. Challenges and the Road Ahead Bangladesh lacks the ?nancial resources, technology, and specialized workforce required to independently conduct offshore exploration. Consequently, foreign investment remains indispensable.

to attract investors, the Energy Division is considering a series of international roadshows. While details have not yet been ?nalized, experts recommend promotional events in major energy and ?nancial centers, including Singapore, Europe, and North America. Many also advocate organizing followup events in Bangladesh so prospective investors can directly assess the country’s investment climate, regulatory environment, and political conditions.

industry stakeholders note that the number of companies actively investing in offshore exploration worldwide is relatively small.

therefore, Bangladesh must pursue a highly targeted investment promotion strategy.

experts suggest engaging foreign diplomats stationed in Dhaka and directing Bangladeshi missions abroad to actively promote offshore opportunities among major energy companies.

the upcoming D-8 Energy Ministers’ Meeting in Baku may provide another platform for promoting investment opportunities in Bangladesh’s offshore sector. Conclusion Many experts estimate that Bangladesh’s portion of the Bay of Bengal could contain between 20 and 30 TCF of natural gas resources. However, only extensive seismic surveys and exploratory drilling can determine whether those resources actually exist and can be produced commercially. Despite becoming one of the ?rst countries in the region to begin offshore exploration in the 1970s, Bangladesh has discovered only one commercial offshore gas ?eld-Sangu-which has already been depleted. Several major international companies, including TotalEnergies, ConocoPhillips, Santos, POSCO Daewoo, and ONGC, have previously explored offshore blocks in Bangladesh but eventually withdrew after failing to achieve commercially attractive results.

the government is now offering 26 offshore blocks-11 shallow-water and 15 deepwater blocks-in what may be its most important offshore investment drive in decades.

the revised PSC has addressed many investor concerns, but contractual improvements alone may not be enough. Success will depend on how effectively Bangladesh can market its offshore potential, improve data quality, build investor con?dence, and navigate an increasingly complex geopolitical landscape. For a country facing mounting energy import costs and growing demand, unlocking the Bay of Bengal’s resources could transform its energy future. Whether Offshore Bidding Round 2026 succeeds where previous efforts failed may ultimately determine Bangladesh’s long-term energy security trajectory

The ‘First International Conference on Transitioning Away from Fossil Fuels’ convened in Santa Marta, Colombia, bringing together global leaders and stakeholders to advance international cooperation on climate action and energy transition. Co-hosted by Colombia and the Netherlands, the conference was attended by representatives from 57 countries, along with delegates from local governments, international organizations, civil society, the private sector, and academia. Representing Trkiye at the event, Mehrali Ecer, Deputy Director of Climate Change, participated in the high-level segment alongside an accompanying delegation. Addressing the opening session, Ecer emphasized that Trkiye will guide its COP31 Presidency under the core principles of ‘dialogue, consensus, and action.’ He further highlighted that COP31 would prioritize implementationdriven outcomes, focusing on transforming high-level climate commitments into concrete and measurable actions.

throughout the conference, thematic sessions addressed key issues including energy security, the gradual phase-down of fossil fuel production, economic transformation, and strengthening international cooperation in support of a just energy transition.

in his remarks, Hasar described COP31 as the ‘COP of Implementation,’ emphasizing that the summit will focus on transforming commitments into measurable outcomes. He stated that Trkiye aims to position COP31 as a bridge-building platform that strengthens trust, deepens international partnerships, and delivers practical solutions across sectors. He further stressed that adaptation efforts worldwide remain insuf?cient due to ?nancing gaps, limited implementation capacity, and disconnects between policy frameworks and realities on the ground. According to Hasar, COP31 must become the turning point that moves the international community ‘from commitment to implementation, and from rhetoric to action.’ The outcomes of the Istanbul International Water Forum are expected to contribute to the upcoming UN Water Conference later this year, as well as the 11th World Water Forum and the 20th IWRA World Water Congress, both scheduled to take place in Istanbul in 202

Fresh nuclear fuel has been successfully loaded into the reactor core of Unit1 at the Rooppur Nuclear Power Plant, marking a major milestone toward the plant’s commissioning and electricity generation.

the fuel loading process began on 28 April and involved the sequential insertion of 163 fuel assemblies into the reactor core, according to of?cials involved in the project.

the operation is considered one of the most critical stages before the unit begins commercial power generation.

alexey Deriy, vice president of Atomstroyexport, said the work was carried out in full compliance with the initial core loading program, operational regulations and international nuclear safety standards. ‘The next stage includes installation of the upper reactor unit and integration of all required in-core instrumentation systems,’ he said.

Environment, Forest and Climate Change Minister Abdul Awal Mintoo has said the government plans to introduce electric vehicles on a larger scale than they are today, in a bid to reduce carbon emissions and build an environment-friendly transportation system in the country. ‘The government is already planning to introduce ‘electric vehicles’ to develop an environmentally friendly transportation system and reduce carbon emissions,’ he said.

the minister made this remark when International Labour Organization (ILO) Country Director for Bangladesh Max Tuñón met him at his ministry of?ce recently, said a PID handout. He told the IL0 Country Director that the government has taken various effective initiatives under the ‘Extended Producer Responsibility (EPR)’ policy to ensure sustainable waste management. The government is working relentlessly to make plastic waste management more organised and mandatory, he said.

During this Eid-ul-Azha vacation I spent a couple of days in two separate villages away from the capital city. During my short stays I had had ?rst-hand experiences on how the villagers endure frequent loadshedding caused short supply of power to the Rural Electri?cation Board.

at my Suradia village home in Munshiganj district’s Sreenagar upazila I found electricity going off for hours together amid sweltering Jaishta heat. Whenever it returns it stays not for long, leaving consumers to endure not only sweat but concerns about irrigation pumps and agricultural activities.

the outages cause losses also to poultry farms apart from causing damages to refrigerators whoever owns the cooling appliances. The short vacation also took me and some of my friends to a restaurant close to River Padma in Dohar-Nawabganj area where we found customers and staff members struggling with on-again off-again power outages. We suffered too on a hot and humid day.

though the leave of power here was a bit short the restaurant authorities complained that there had recently been more disruptions in power supply obstructing smooth ?ow of business.

the summer is really going to be dif?cult.

the same is not seen in Dhaka, the capital city and the seat of power. There are discriminations between the capital city and the rural Bangladesh. With peak electricity demand crossing 16,000MW on a typical summer day Bangladesh Power Development Board can supply maximum up to 14,000MW to Power Grid Company Bangladesh for distribution through the six distribution companies, including the REB, which bears the brunt of the short supply.

the mainstream media does not provide space and time the sufferings of the villagers actually deserve.

the media’s coverage in this regard is discriminatory too.

the Dhaka city dwellers are being spared the load-shedding as part of the government’s tactic to keep them silent especially on this subject. Dhaka residents have too many problems to deal with. Rising cost of living, high fuel prices, traf?c chaos and not-so-good law and order are among the perils faced by the capital city residents. But they scream more when electricity goes off rendering refrigerators and fans idle. This is also the city where the rich, elite and the power live.

also the media sits here. So, the subsequent governments have always adopted the policy of keeping the capital city free of loadshedding.

the rural people are left to suffer as they are too weak to protest. They are the voiceless people.

the city people matter more than the villagers. The discrimination has been going on for many years. No doubt, it will go on. But the economic development and the efforts to reduce poverty suffer. When the lack of electricity stops electric irrigation pumps the production of rice and vegetables get the hit.

though declining, the agriculture’s contribution to Bangladesh’s Gross Domestic Product (GDP) is still sizeable.

the sector accounts for over 11% of the GDP, which is currently $510 billion in nominal term. But it provides employment to the country’s up to 40% of the population acting as a backbone of the economy. Bangladesh suffers when its agriculture gets weak.

it has been weakening over the years.

in the early 1970s agriculture accounted for 38% of the GDP.

in FY2425 it declined to 1.79%, the lowest rate of growth recorded in the last 11 years, according to Bangladesh Bureau of Statistics.

this means Bangladesh is lagging behind in its drive for economic recovery amid global fuel prices turmoil. The drive to cut down the rate of poverty is also witnessing setbacks.

everyone everywhere requires electricity.

this is citizens’ rights. Political parties while seeking votes always promise a fair distribution of electricity between rural and urban residents.

in practice, the rural people remain neglected. No government has ever been able to reverse this trend

The government has signed contracts with 12 independent power producers (IPPs) to generate 918-MW electricity at an average cost of 7.80 cents (Tk 9.12) per kilowatt-hour, with of?cials saying the amount was roughly 2.5 cents lower than previous such costs. Bangladesh Power Development Board (BPDB) of?cials said that the recent deals were part of an extensive energy mix campaign to maximize renewable energy generation, reducing dependence on traditional and, particularly, on imported fossil fuel sources. ‘The tariff drop of 2 to 3 cents means the average generation cost will fall signi?cantly from earlier average prices that hovered around 10.50 cents per kilowatt-hour,’ said an of?cial. BPDB of?cials said as part of the campaign, the new government annulled a past interim regime decision to scrap earlier adopted six power projects, alongside taking six new projects to get the 918 MW electricity at lower tariffs.