2.500
%
Uncertain
73
mm boe
4
%
Access to the Bangladeshi upstream segment is starting to open, but participant size remains an issue for the country's regulators. This is further complicated by the overly complicated licencing regime, which although appearing to be clear on paper, in practice is a barrier for new entrants.
June 15, 2021
Asia - South West
mm bbl
bcf
Southern Asia, bordering the Bay of Bengal, between Burma and India.
PSC/PSA
Almost all terms being either biddable or negotiable. Cost recovery ceilings are biddable, but a mechanism exists to ensure all costs are recovered within a five-year period. Profit oil splits are biddable, and are based upon production rates. There is also a domestic supply obligation of up to 80% of the contractors share of profit oil, at a discount of 15% to the normal price (this applies to oil only). The rate of corporate income tax is negotiable, whilst a range of bonuses, rentals and fees are also payable.
The overall strength of economic growth has contributed to a substantial decrease in poverty over the past decade. The Government’s “Vision 2021” aims to eliminate extreme poverty completely and achieve Middle Income Country status by the 50th anniversary of the country’s birth. Balance of payments remains in surplus and foreign currency reserves at $32 billion provide a comfortable 9 month cushion. The Tax/GDP ratio is still very low in global terms at c.10%. There have been several IED attacks targeting police and security forces in Dhaka, Khulna, Chittagong and Sylhet. There is a risk that future attacks could target public gatherings, including religious gatherings and political rallies, crowded areas, places with a police or security presence and locations where foreign nationals are known to gather.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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