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Bangladesh's Blue Economy: Overcoming Challenges for Sustainable Offshore Development
During its independence in 1971, Bangladesh used the Permanent Court of Arbitration (PCA) and the International Tribunal for the Law of the Sea (ITLOS) to reach important maritime agreements with India and Myanmar. By defining marine borders and resolving long-standing disputes, these agreements allowed Bangladesh to investigate and sustainably utilize offshore resources, notably sizable natural gas deposits. These achievements have improved bilateral ties and economic prospects while establishing a standard for regional marine cooperation. However, due to a lack of international cooperation, technological know-how, and government efforts, Bangladesh will have difficulty capitalizing on its marine benefits. To tackle these obstacles, it is necessary to enhance the attractiveness of Production Sharing Contracts to International Oil Companies (IOCs), carry out comprehensive geological studies, and establish long-lasting legal and regulatory structures to guarantee fair and sustainable offshore development.
The historic ruling by the Bangladesh Sea Court has established a worldwide standard for the amicable settlement of maritime conflicts between nations through judicial arbitration. The agreement highlights how crucial UNCLOS is to upholding international marine law, fostering economic growth, and fostering bilateral ties. Bangladesh has been a leader in marine development after reaching maritime agreements with its neighbors, announcing bold projects targeted at offshore development. These include the founding of the Bangabandhu Sheikh Mujibur Rahman Maritime University (BSMRMU), the Bangladesh Delta Plan 2100, which encourages offshore petroleum development, the Maritime Affairs Unit, and Bangladesh's first maritime university. To facilitate petroleum projects, the Bangladesh Delta Plan 2100 encourages the sustainable use of marine resources, regional cooperation, and the upgrade of maritime infrastructure. In line with its goals for economic and energy security, the nation's dedication to environmental sustainability and catastrophe resilience encourages the sustainable extraction and use of offshore petroleum.
Bangladesh's role in promoting the blue economy in the Indian Ocean area was highlighted during the Third Indian Ocean Rim Association (IORA) Blue Economy Ministerial Conference in Dhaka, Bangladesh, in 2019. The Dhaka Declaration, a unanimous decision by the 22 IORA members, including the Seychelles, to strengthen collaboration and investigate the region's unrealized blue economy potential, was the result of the meeting. Fisheries, aquaculture, renewable ocean energy, seaports, shipping, offshore hydrocarbons, seabed minerals, marine biotechnology, research and development, and tourism were among the primary priority areas that were chosen. In addition, the Territorial and Maritime Zones (Amendment) Act, the Model Offshore Production Sharing Contract, and the Eighth Five-Year Plan have all been developed by Bangladesh. The aforementioned measures seek to optimize Bangladesh's offshore petroleum reserves, foster energy stability, and improve both the country's economic and environmental well-being.
The approval of the Blue Economy by Bangladesh as a sub-sector of the Trade, Investment, and Development Sector of BIMSTEC represents a major advancement in sustainable development and regional collaboration. To capitalize on the Bay of Bengal's marine resources, the nation has suggested the creation of an Inter-Governmental Expert Group to create an Action Plan on the Blue Economy. This program aims to provide specific tactics that highlight sustainable practices, economic integration, and environmental stewardship to fully use the Blue Economy's enormous potential for regional development. With the completion of a multi-client seismic survey encompassing more than one-third of its maritime region, Bangladesh may be able to lessen its reliance on LNG imports. Targeting all 24 blocks up for sale, the Bangladesh Offshore Sale Round of 2024 is the first offering of offshore property since 2012. Bangladesh's Indo-Pacific Strategy promotes an open, prosperous, and inclusive regional vision by focusing on diversification and sustainable economic growth.
Although there is great potential for Bangladesh's marine settlements to unleash offshore resources, their progress has been hampered by disappointments and unrealized promises. The lack of ability to carry out thorough geological surveys, arrange competitive bidding rounds for exploration, and draw in international oil firms (IOCs) has caused a gap between the nation's operational capabilities and strategic goals. The lack of initiative in extraction activities and the absence of Marine Spatial Planning (MSP) have also contributed to the stalling of energy security. Bangladesh needs an all-encompassing strategy that draws in IOCs, guarantees long-term and fair rewards for its citizens, and implements strong rules and regulations to fully realize the promise of its offshore development. Sustainably utilizing resources will also benefit from protecting maritime habitats and emphasizing MSP. Bangladesh can turn its maritime resources into a pillar of the country's economy by resolving these issues, ensuring environmental sustainability, economic growth, and energy security.
- Bangladesh successfully resolved maritime disputes with India and Myanmar, enabling offshore resource exploration.
- Significant steps taken, including the Bangladesh Delta Plan 2100 and the Dhaka Declaration, to promote sustainable marine resource use.
- Need for improved geological surveys, international investment, and robust regulations to fully capitalize on offshore potential.
