Chevron proposes to extend areas of Bibiyana Gas Field

Chevron, the operator of Bibiyana Gas Field has submitted a proposal to the Petrobangla to explore some extended areas of Bibiyana Gas Field not endorsed by the existing Production Sharing Contract (PSC).
"The USA giant has expressed its willingness to explore 70 square kilometer extended areas of the southern part of Bibiyana Gas Field to add fresh gas to the national grid. We are examining the issue," Senior Secretary of the Energy Division MD Anisur Rahman told the daily Observer.
Quoting the submission, a senior official of the Energy Division said the areas have some potential. Earlier, Chevron relinquished the areas and handed over it to the Petrobangla.
Bibiyana Gas Field has a remaining gas reserve of around 3043 bcf (billion cubic feet) as per the estimate made in January 2017.
Petrobangla officials said the gas production from the three gas fields of Chevron might start to
   deplete from 2018-2019.
Chevron has been in operation in Bangladesh since 1998. Chevron is also operating in two other gas fields - Jalalabad and Moulvibazar.
If the Energy Division accepts the proposal of Chevron then it will be a 'violation of contract' as the model PSC did not allow such contract.
An industry insider said if it is allowed then it will be an example for others. They might want to go for extension the same way.
"Yes, we can consider the proposal if they (company) are willing to increase the share of Bangladesh (if any gas is found there) in the extended part of Bibiyana. At the same time we could discuss the pricing issue," he said.
Energy Adviser Dr M Tamim said, "Bangladesh is holding some advantageous position here as we don't need to go for fresh investment or attract any new party to waste time to go for negotiation."
"The job requires marginal investment by and large. The package is in our favor. We can sit with them for discussing some issues," he added.
Chevron, the operator of Bibiyana Gas Field, has also submitted a US$22 million development plan to Petrobangla to install some small size compressors in well heads to increase pressure for gas production.
"We need to continue the supply from Bibiyana as it is the major supplier to the national grid. However, we are examining it," a senior official at Petrobangla said.
The PSC for Bibiyana Gas Field, produces around 1250mmcfd of gas, will expire in 2029.
Besides, the PSCs in Block-13 (Jalalabad) and Block-14 (Maulavibazar) will end before the expiry of Bibiyana Gas Field.
The three major gas fields being operated by Chevron contribute around 57 percent to the total daily gas production.