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Chevron now moves to acquire an around 60-square-kilometre 'flank' to Bangladesh's largest producing gas-field Bibiyana for additional exploration as the American energy major deems the area abounds with hydrocarbons.
The US-based multinational believes there are additional gas reserves north of the Bibiyana gas field, which is located outside its contract area in the gas-reach northeastern region, a senior Petrobangla official told the FE Sunday.
Chevron has sought the flank area from state-run Petrobangla based on unsolicited offer under the Speedy Supply of Power and Energy (Special Provision) Act 2010.
The law has a provision of immunity to those involved with a quick-fix remedy for energy and power crunch.
"The company intends to carry out drilling of several wells to increase natural gas production (once it gets approval), says the official.
The Bibiyana onshore gas field, located under block 12 in Habiganj district of Sylhet division, currently produces around 1,250 million cubic feet per day (mmcfd) of natural gas, which accounts for around half the total output from the country's gas fields.
The country's overall natural gas output was around 3,002 mmcfd as on November 13, 2021, of which local gas fields, including Bibiyana, produced around 2,360 mmcfd and the remaining 640 mmcfd gas came as re-gasified LNG (liquefied natural gas), according to Petrobangla.
Chevron Bangladesh is currently the largest producer of natural gas in Bangladesh with its overall natural gas output of around 1,452 mmcfd from three of its onshore gas fields-Bibiyana, Jalalabad and Moulavi Bazar-located in blocks 12, 13 and 14, respectively.
Chevron signed production-sharing contract (PSC) in November 2004 with Bangladesh's state energy agency Petrobangla and the government to explore gas from Bibiyana field.
The company started supplying natural gas commercially from Bibiyana in March 2007 with an initial production capacity of 250 mmcfd after an initial investment of $200 million.
Its output was increased to around 900 mmcfd from October 2014 and raised further to around 1,200 mmcfd from March 2015.
Chevron Bangladesh is currently getting US$2.76 per unit (1,000 cubic feet) from Petrobangla for its gas from the Bibiyana field.
Discovered in 1998, the Bibiyana field was initially estimated to have 2.40 trillion cubic feet (Tcf) of proven recoverable gas.
But follow-up studies and development of this field have confirmed that the field is much larger than the initial assessment, and with the latest estimation done in 2015 Bibiyana's reserves stand at around 7.0 Tcf.
When contacted, energy expert professor Dr Ijaz Hossain welcomed Chevron's move to drill additional well near Bibiyana, since the country has a rising demand for the fuel and recently opted for import in liquefied form.
But he stressed that allowing Chevron to drill additional well outside the purview of the existing contract area "should be on current tariff terms".