Bangladesh has launched a new offshore licensing round, offering 26 exploration blocks in the Bay of Bengal as the country seeks to attract international investment into one of Asia's least-explored offshore regions.
The round comprises 11 shallow-water and 15 deep-water blocks, with bids due by 30 November 2026. The offering follows revisions to the country's Production Sharing Contract (PSC) framework aimed at improving competitiveness and reducing exploration risk for prospective operators.
Among the changes are extended exploration periods of up to nine years, full recovery of exploration and development costs, reduced workers' profit participation contributions and provisions for long-term production rights.
The licensing round comes as many governments seek to strengthen domestic energy security and encourage new resource development. For Bangladesh, offshore exploration remains relatively immature despite the basin's size and geological potential.
For geoscientists, the Bay of Bengal represents an intriguing frontier province. Large areas remain sparsely explored by modern seismic surveys and drilling, leaving significant uncertainty around basin architecture, petroleum systems and prospectivity. The combination of underexplored acreage and revised fiscal terms may increase interest from operators looking to diversify exploration portfolios beyond more mature basins.
The key question will be whether the updated PSC framework can succeed in attracting industry participation after previous licensing rounds generated limited interest. The outcome of the 2026 round will provide an important indication of industry appetite for frontier exploration opportunities in the region. Bids close November 30, 2026.
Source: Petrobangla / Bangladesh Offshore Bidding Round 2026.
