Dhaka, Monday, December 17, 2018 06:47 AM   
     
Home Energy BD Energy World Green Energy Opinion Interview Environment Business Others Archive
LATEST >
বাংলা সংস্করণ
   
Chevron to sell Bangladesh gas fields to Chinese consortium

Chevron Corp is selling its three Bangladesh gas fields, worth an estimated $2 billion, to a Chinese consortium as the U.S. oil and gas group looks to shed non-core assets this year.

The deal, if completed, would mark China`s first major energy investment in the South Asian country, where Beijing is pumping in billions of dollars in a race with New Delhi and Tokyo for influence.

The gas fields, which account for more than half of the total gas output in Bangladesh, are being sold to Himalaya Energy, Chevron said. Himalaya is owned by a consortium comprising state-owned China ZhenHua Oil and investment firm CNIC Corp.

CNIC, set up in Hong Kong in 2012, is a government investment platform that focuses on supporting Chinese companies` overseas investment.

Reuters reported in February that ZhenHua Oil had signed a preliminary deal with Chevron to buy the Bangladesh natural gas fields.

“The agreement is for the sale of Chevron`s Bangladesh companies, which hold our interests in Bangladesh,” a company spokesman told Reuters by email on Monday. “The value of the transaction is not being disclosed and we are not at liberty to share the details of the agreement.”

A ZhenHua spokesperson confirmed the agreement, adding that the closing of the deal would depend on approval from China’s Ministry of Commerce.

Chevron sells its entire output from the Bangladesh fields -- 16 million tonnes a year of oil equivalent -- to state oil company Petrobangla under a production-sharing contract.

The Bangladesh government has the right of first refusal in any asset sale.

Bangladesh`s junior minister for power and energy, Nasrul Hamid, said that energy consultant Wood Mackenzie is still evaluating whether it would be profitable for the country to make a bid.

“We can`t take any decision hastily until we get the consultancy report,” Hamid told Reuters. “We believe that Chevron would honor our request.”

The Chevron spokesman said that the Bangladesh government is “critical to the ongoing success of the business, including the transition to the new owner,” and that it would maintain continuous communication with Dhaka as the process progresses. 

The gas fields -- Bibiyana, Jalalabad and Moulavi Bazar -- had average net daily output of 720 million cubic feet of gas and 3,000 barrels of condensate, or liquid hydrocarbon produced with gas.

Chevron said in October 2015 that it planned to sell assets worth about $10 billion by 2017, including the Bangladesh gas fields and geothermal projects in Indonesia and the Philippines, amid a prolonged slump in energy prices.

Print PDF

   You may also like

Category: Gas
Bakhrabad Gas Company earns Tk 217.86 lakh in profit

Category: Gas
Govt scraps new floating LNG projects for land-based ones

Category: Gas
Govt resolves FSRU issues, to resume LNG imports

Category: Gas
No gas price hike for now: BERC

Category: Gas
Import duties on LNG withdrawn

Category: Gas
Chattogram LNG supply rises as RasGas vessel docks

Category: Gas
Announcement of gas price hike ‘this week’

Category: Gas
Chattogram starts getting 300mmcfd LNG

Category: Gas
Chevron largest natural gas producer in Bangladesh
     
    RECENT STORIES   MOST READ
    FOLLOW US ON FACEBOOK
    Recent Gas Stories
Bakhrabad Gas Company earns Tk 217.86 lakh in profit
Govt scraps new floating LNG projects for land-based ones
Govt resolves FSRU issues, to resume LNG imports
No gas price hike for now: BERC
Import duties on LNG withdrawn
Chattogram LNG supply rises as RasGas vessel docks
Announcement of gas price hike ‘this week’
Chattogram starts getting 300mmcfd LNG
Chevron largest natural gas producer in Bangladesh
National grid gets additional 16mmcfd of gas from Habiganj field


Explore the energynewsbd.com
Home
Energy World
Opinion
Environment
Others
Energy BD
Green Energy
Interview
Business
Archive
About Us Contact Us Terms & Conditions Privacy Policy Advertisement Policy

   Editor & Publisher: Aminur Rahman
   Copyright @ 2015-2018 energynewsbd.com
   All Rights Reserved | Developed By: Jadukor IT