Indian Firms ONGC Videsh and OIL Withdraw from Two Bangladesh Offshore Blocks.

Indian state-owned explorers ONGC Videsh (OVL) and Oil India (OIL) have exited two oil and gas blocks in Bangladesh after their performance bank guarantees were invoked by state-run Petrobangla. The move comes amidst a backdrop of ongoing diplomatic strain between India and Bangladesh.

Relations between the two countries have been tense since the ouster of then-Prime Minister Sheikh Hasina last year following widespread student-led protests.

OVL and OIL had formed a consortium with the Bangladesh Petroleum Exploration & Production Company (BAPEX) to explore the two blocks. In the joint venture, the two Indian central public sector undertakings (CPSUs) each held a 45% participating interest, with BAPEX holding the remaining 10%. The invocation of the bank guarantees marks a definitive end to the Indian companies' involvement in the project.