Bangladesh is aggressively seeking to increase its domestic oil production by inviting bids for oil and gas exploration in 24 blocks in the Bay of Bengal, aiming to mitigate its energy shortages and economic crisis.
This month, the Bangladesh government invited international bids for oil and gas exploration in 24 blocks in the Bay of Bengal. This is aimed at increasing the country’s oil output. For several years, Bangladesh has been plagued with energy shortages, as its gas reserves have been depleting. Further, the rise in energy prices following the Russian invasion of Ukraine and subsequent sanctions on Russian energy have hit the low-income country hard.
The International Monetary Fund already provided Bangladesh with a $4.7-billion bailout to tackle increased energy costs in 2023, but new oil and gas finds could provide it with a longer-term solution to its energy crisis. In February, the International Islamic Trade Finance Corporation ITFC signed a $2.1 billion financing plan with Bangladesh to fund the country's oil and gas imports.
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