Chevron wants to stay in Bangladesh

Chevron, the US oil giant, wants to continue its operations in three gas fields in Bangladesh setting a condition to increase gas price to US$ 3 dollar from US$2.76 for per unit gas on an average.
Following a meeting with Petrobangla, the state-owned oil and gas corporation, has submitted a fresh proposal to the government- owned authority with a plea to increase the price of per thousand cubic feet of gas from the gas fields on an average, according to the Energy Division.
"Chevron will stay here and continue its operations. Chevron wants to invest fresh $400 million," said State Minister for Power, Energy and Mineral Resources Nasrul Hamid on Thursday.
But he did not elaborate the whole gamut.
According to the Energy Division, Chevron wants to sell gas to Petrobangla under the PSC at $3 per Mcf (1,000 cubic feet), instead of the current $2.76 rate.
Chevron Bangladesh has also proposed the Petrobangla to set up centrifugal compressors in most of the wells at Bibiyana Gas Field under the PSC at a cost of more than $400 million, sources said.
The company believes the move will boost gas pressure and extraction at Bibiyana field, which plays a crucial role in maintaining the country's energy security.
The US oil giant agreed in April to sell its three Bangladesh gas fields--Bibiyana, Jalalabad and Moulavi Bazar--to Himalaya Energy. These have average net daily output of 720 million cubic feet of gas and 3,000 barrels of condensate.
Chevron, the largest foreign investor and gas producer in Bangladesh, operates under a production sharing contract (PSC) in Bibiyana gas field's Block 12, and in blocks 13 and 14 of Jalalabad and Moulvibazar fields.
 "Chevron had planned to close the sale, part of non-core asset disposals, around mid-October. So, we sat with them. We conveyed all these plan of Chevron to the PMO to Energy Division. We are waiting for a decision in this regard," an energy ministry source said.
Chevron Asia South Business Unit Managing Director Brad Middleton has reportedly also made some proposals to Petrobangla regarding their plan.
Chevron produces 1255 MMCF of gas from Bibiyana, 270 MMCF from Jalalabad and 50 MMCF from Moulavibazar fields per day. The three fields could have 3 to 4 trillion cubit feet (TCF) of gas, according to Petrobangla estimates. As per the PSC, the government gets 60 to 77 per cent of free gas from three gas fields.