Bangladesh has initiated an international tender for oil and gas exploration in 26 offshore blocks located in the Bay of Bengal, aiming to enhance domestic gas supply while reducing reliance on expensive liquefied natural gas (LNG) imports. The tender, announced by state-run Petrobangla, is set against a backdrop of declining gas reserves and increasing energy prices due to geopolitical tensions. Energy Minister Iqbal Hassan Mahmood emphasized that the revised terms under the Bangladesh Offshore Model Production Sharing Contract (PSC) 2026 are designed to attract foreign companies. The deadline for bid submissions is November 30, 2023. Notable changes include a reduction in the relinquishment of exploration acreage from 50% to 20% and a decrease in mandatory contributions to the workers' welfare fund from 5% to 1.5%. Additionally, the pricing formula for deepwater gas has been revised to link prices to Brent crude, allowing contractors to receive up to 11% of the average Brent price, with a floor of $70 and a ceiling of $100 per barrel. Despite resolving maritime disputes, Bangladesh has yet to make significant offshore gas discoveries, contrasting with exploration successes in neighboring countries.