Chevron keen to invest in further exploration of two onshore blocks

Chevron Bangladesh, a part of the global energy company Chevron, has expressed its keenness to invest in further exploration of two onshore gas blocks - block-11 and block-12 - in the country's gas-rich north-eastern region along with a compression station project.

"Officials of the US company have spelled out their plan to explore these two onshore blocks and install a compression station near Jalalabad gas field to boost domestic natural gas output," Adviser of the Ministry of Power, Energy and Mineral Resources Dr Muhammad Fouzul Kabir Khan told The Financial Express Tuesday.

The American company reiterated its investment plan when Chevron's new President of Base Assets and Emerging Countries Javier La Rosa, along with Chevron Bangladesh Managing Director and President Eric M Walker, met the adviser and other top ministry officials and government high-ups at the railway ministry's office.

"The state-run Petrobangla will evaluate Chevron's proposal for exploring the two onshore blocks further," said Mr Khan.

Chevron officials also thanked the interim government for clearing the outstanding payments, which had started piling up since the start of the Russia-Ukraine war in February 2022, he said.

Mr Javier La Rosa reaffirmed Chevron's longstanding partnership with Bangladesh during meetings with key government officials in Dhaka.

"I am pleased to be here in Bangladesh, engaging with our valued government of Bangladesh stakeholders on day one of my new role," he said.

"We have a strong partnership with the government, Petrobangla, and the people of Bangladesh - a partnership that has supported Bangladesh's energy security and fuelled economic growth for 30 years," he also said.

"We have been encouraged by the approach of the interim government to resolve the current challenges, which sends a positive signal to the existing and potential investors. Together, we can leverage our enduring partnership to work through any challenges and unlock new opportunities for Bangladesh's energy sector," he added.

Energy Secretary Mohammad Saiful Islam, Petrobangla Chairman Md Rezanur Rahman, Executive Chairman of Bangladesh Investment Development Authority (BIDA) Ashik Chowdhury, and the special envoy to chief adviser for international affairs also took part in the meeting.

Sources said Chevron Bangladesh's investment proposal worth around $500 million to develop the onshore hydrocarbon block-11 and attain exploration rights over an extended area of block-12 in the Surma basin is currently pending with Petrobangla for approval.

Chevron plans to explore these blocks to discover fresh gas, a move that would augment supply to meet the country's insatiate energy needs.

The gas-rich Surma basin is situated in the country's northeast, and the region contributes much of the natural gas in the national grid.

Chevron had previously invested around $500 million under its Bibiyana project during 2012-15. The investment included a gas plant expansion, new development wells, and an enhanced liquid-recovery unit.

If new gas is discovered, Chevron would be able to supply natural gas within the shortest possible time using the same processing plant it uses to process Bibiyana gas, sources familiar with the situation said.

The multinational could ramp up natural gas production by up to 1.35 billion cubic feet per day from the Bibiyana field and the new areas using the currently operational Bibiyana processing plant, they added.

Petrobangla officials said they have not yet made any decision on Chevron's hydrocarbon exploration and investment plan.

Chevron has partnered with Petrobangla and the government of Bangladesh for 30 years and is the largest US investor in the country.

It accounts for about 60 per cent of Bangladesh's local natural gas production and over 80 per cent of condensate production.

Besides, it has contributed over $4.2 billion to strengthen Bangladesh's energy infrastructure in the last three decades, including over $634 million with local suppliers, serving as a reliable source of foreign exchange.

The company's talented workforce comprises 97 per cent Bangladeshi nationals.

Chevron Bangladesh is currently the largest producer of natural gas in Bangladesh with an output of around 1.08 Bcf per day from three of its onshore fields - Bibiyana, Jalalabad, and Moulavi Bazar, which are in blocks 12, 13, and 14, respectively, according to official Petrobangla data as of Tuesday.

Azizjst@yahoo.com