The Bangladesh government has announced a large-scale initiative to explore oil, gas, and other mineral resources in the Bay of Bengal. At a press conference on May 25, 2026, the Ministry of Power, Energy and Mineral Resources revealed that international tenders have been invited for exploration in 26 deep and shallow sea blocks. The government plans to begin exploration by 2027, signing 25-year contracts for gas extraction and 20-year contracts for oil production with qualified multinational companies.

Officials explained that the new Model Production Sharing Contract (PSC) 2026 outlines a nine-year exploration period, including geological surveys and drilling phases. Petrobangla will hold a profit share of 40–65 percent in shallow waters and 35–60 percent in deep waters. Foreign investors will receive tax exemptions on imported equipment and may export gas or oil if Petrobangla declines to purchase. The gas price will range between USD 7.5 and 11 per MCF, linked to global oil prices.

Energy Minister Iqbal Hasan Mahmud described the initiative as a new era for national energy security, emphasizing reduced import dependence and increased domestic production through foreign investment.