Archive · 13 Aug 2025
Indian Oil Firms Exit Bangladesh Blocks Amid Diplomatic Strains
Indian oil companies, ONGC Videsh and Oil India, were working on oil projects in Bangladesh.
Because of trade disagreements and political tensions, Bangladesh invoked bank guarantees.
As a result, the Indian companies decided to withdraw from these projects, leading to financial losses.
ONGC Videsh and Oil India exited two oil blocks in Bangladesh.
Petrobangla invoked performance bank guarantees for the blocks.
India-Bangladesh relations have been strained since last year.
Oil India made a ₹307.43 crore provision for asset impairment.
OVL board approved termination of production sharing contracts on June 27, 2025.
- Who
- ONGC Videsh, Oil India, Petrobangla, BAPEX
- What
- ONGC Videsh and Oil India exited oil blocks in Bangladesh after Petrobangla invoked bank guarantees.
- When
- Production sharing contracts were terminated on June 27, 2025, following strained relations since last year.
- Where
- Bangladesh
- Why
- Due to strained diplomatic and trade relations, bank guarantees were invoked.
India
Bangladesh
Trade Restrictions
India
Restrictions on import of certain goods from Bangladesh.
Bangladesh
Ban on Indian yarn exports
- Companies Exiting
- ONGC Videsh, Oil India
- Blocks Involved
- SS-04 & SS-09
- Bank Guarantee Invocation
- Petrobangla
- OVL BG Amounts
- $16.4 million (SS-04), $16.7 million (SS-09)
- OIL Provision
- ₹307.43 crore
- Consortium Partners
- OVL, OIL, BAPEX