Chevron Sells Bangladesh Gas Assets

Chevron said April 24 it has agreed to sell its wholly-owned indirect subsidiary in Bangladesh to Himalaya Energy, believed to be a Chinese-owned JV.

The US major neither disclosed sale price, nor said anything about Himalaya Energy, but it did say that closing of the deal is subject to the satisfaction of certain closing conditions. It operates three gas and condensate fields – Bibiyana in Block 12, Jalalabad Block 13 and Moulavi Bazar in Block 14.

Six months ago, it was reported that Chevron was mulling divestment of the assets for $2bn to India’s ONGC, Hong Kong based United Energy Group, or even the Bangladesh government. Two months ago Reuters reported that China's state-run Zhenhua Oil signed a preliminary deal for their purchase; there was no statement on Zhenhua's website relating to Chevron's April 24 announcement. 

However Bangladesh's Daily Star newspaper said that Himalaya Energy is owned by China ZhenHua Oil and CNIC Corporation Ltd.

All natural gas and condensate that Chevron produces in Bangladesh is sold to Petrobangla, the national oil company. Net 2015 production averaged 720mn ft³/d of natural gas and 3,000 b/d of condensate, according to Chevron.

In late 2014, the company announced the start of production at the Bibiyana Expansion Project. The project includes two gas processing trains, additional development wells and an enhanced liquids recovery facility and has a capacity of 300mn ft³/d of natural gas and 4,000 b/d of condensate. The liquid recovery facility started up in 1Q 2015. 

Shardul Sharma