CCEA gives in-principle approval to ‘offshore model PSC 2026’

The Cabinet Committee on Economic Affairs (CCEA) today gave approval in principle to the draft “Bangladesh Offshore Model Production Sharing Contract (PSC) 2026” and partially approved a proposal related to power sector subsidies aimed at ensuring uninterrupted electricity supply across the country. The approvals came from the 13th meeting of the CCEA in this year held at Bangladesh Secretariat with Finance Minister Amir Khosru Mahmud Chowdhury in the chair.

In a significant development for the country’s offshore energy exploration framework, the committee accorded in-principle approval to the draft “Bangladesh Offshore Model Production Sharing Contract (PSC) 2026”. The proposal, presented by the Energy and Mineral Resources Division, seeks to modernize and strengthen the contractual structure governing offshore hydrocarbon exploration activities. 

The committee recommended the draft for approval in- principle to facilitate future investment and operational arrangements in offshore oil and gas exploration. The CCEA also discussed a proposal from the Power Division concerning subsidy support for selected power import and generation entities to maintain uninterrupted electricity supply. Following discussions, the committee granted “in-principle approval (Partial)” to the proposal. 

The partial approval covers subsidy eligibility for power imports from India and Nepal, electricity imports from Adani Power Jharkhand, government-owned power plants, and joint venture-based power projects.