BAPEX will drill 69 wells over the next three fiscal years as Bangladesh accelerates domestic oil and gas exploration under a broader energy security plan aimed at reducing import dependence and strengthening long-term fuel supply.
According to the national budget document, the government has adopted a comprehensive strategy that combines increased domestic gas production with strategic fuel reserves, expanded LNG infrastructure, higher refining capacity and diversified energy imports to improve resilience against global supply disruptions.
Through the Bangladesh Petroleum Exploration and Production Company Limited (BAPEX), the government plans to conduct 270 kilometres of geological surveys, 700 line-kilometres of two-dimensional (2D) seismic surveys and 700 square kilometres of three-dimensional (3D) seismic surveys between the 2025-26 and 2027-28 fiscal years. BAPEX will also carry out workover operations on 31 existing wells using its own drilling rigs.
To further strengthen exploration capacity, the government plans to procure two new drilling rigs for BAPEX. It has also launched a new Bangladesh Offshore Bidding Round after revising the Model Production Sharing Contract (PSC) to attract international oil companies while safeguarding national interests.
Under the revised framework, nine shallow-water blocks and 15 deep-water blocks have been opened for exploration under production-sharing agreements. The government is also placing greater emphasis on offshore gas prospects, critical minerals and unconventional hydrocarbon resources as part of its long-term energy strategy.
Alongside exploration, Bangladesh is establishing Strategic Energy Reserves and supporting storage facilities to protect fuel supplies from global market volatility and emergency disruptions. The budget document says the initiative will help strengthen national energy security, maintain regional balance and support affordable energy prices through cost-effective infrastructure.
The government is also reviewing the construction of an additional floating LNG terminal at Moheshkhali, alongside the country's two existing floating terminals. Meanwhile, land acquisition and consultant appointment for a land-based LNG terminal at Matarbari are in their final stages.
Authorities are preparing an action plan to connect gas from the Bhola region to the national gas grid. The rollout of prepaid gas meters is also being accelerated to reduce wastage, eliminate illegal connections and minimise system losses.
To reduce exposure to imported fuel risks, Bangladesh is diversifying its energy import sources beyond the Middle East by expanding cooperation with suppliers in Asia, Africa and Europe while encouraging greater private investment and Public-Private Partnership (PPP) projects in the energy sector.
The budget also outlines plans to maximise the use of the country's existing 601.50 kilometres of fuel transportation pipelines and expand petroleum refining and storage capacity.
A phased programme has been adopted to build a new crude oil refinery with an annual capacity of 5 million metric tonnes in Chattogram or another coastal industrial zone. As part of that plan, the government is implementing the Second Eastern Refinery Limited (ERL-2) project, which will add refining capacity of approximately 3 million metric tonnes per year.
To improve fuel distribution, a Smart Fuel Distribution Monitoring System has been introduced in 2,722 fuel tank lorries, while steps are under way to operationalise the Single Point Mooring (SPM) facility for faster petroleum unloading.
The government has also set production targets of 600,000 metric tonnes of coal and 1.4 million metric tonnes of stone for the 2026-27 fiscal year. Development work is progressing at the Barapukuria Second Phase and Dighipara Coal Field, while studies are under way to assess valuable minerals, including zircon and monazite, found in the sands of the Jamuna and Meghna rivers.
The budget document says recent geopolitical tensions in the Middle East have pushed up global spot prices of diesel and LNG, increasing import costs. Despite those pressures, the government has continued providing energy subsidies, maintained gas prices and prioritised domestic production to improve Bangladesh's long-term energy security.
