Govt to float offshore exploration tender next Monday, solar policy by June: Energy minister
Bangladesh has not carried out meaningful offshore exploration for the past 17 years despite securing maritime boundary settlements, he said.
Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood Tuku on Friday (22 May) said the government will float an international tender next Monday for offshore oil and gas exploration, while an investment-friendly solar energy policy is expected to be unveiled by June.
Speaking at a policy symposium in Dhaka, he said the government is prioritising energy security through expanded exploration, structural reforms in the power sector and diversification into renewable energy sources.
Tuku said Bangladesh has not carried out meaningful offshore exploration for the past 17 years despite securing maritime boundary settlements.
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"The last major offshore exploration initiative was undertaken in 1991 under the BNP government led by former prime minister Khaleda Zia, which later enabled ongoing gas production by Chevron," he said.
"We achieved victory in maritime boundary disputes, but we have yet to extract resources from the sea. To address this, we are floating an international tender for offshore exploration next Monday," he added.
The minister said the government is strengthening state-owned Bangladesh Petroleum Exploration and Production Company (Bapex) through the procurement of new rigs.
Acknowledging Bapex's lack of deep-sea drilling expertise, he said the company has been advised to participate in the upcoming tender through joint ventures with international oil companies to ensure Bangladesh retains a strategic stake in offshore resources.
Highlighting the government's clean energy agenda, Tuku said work is underway on solar, wind and waste-to-energy projects, with a new solar policy aimed at attracting investment expected by June.
He said high import taxes on battery storage systems remain a major obstacle for private investors in the renewable energy sector.
"The current tax structure on solar batteries is too high, discouraging investors. We are working with the finance ministry to resolve these tax and tariff issues," he said.
The government is targeting at least 5,000 megawatts (MW) of renewable energy generation by the end of its term, however, Tuku expressed hope that the figure could reach 10,000MW if implementation proceeds smoothly.
