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Chevron to sell Bangladesh gas fields to Chinese consortium

EastBengalPro

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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.

By Krishna N. Das and Serajul Quadir

Reuters
 
It just means Bangladesh was not a priority country for Chevron, that is what is taken from the confusing statement "None core strategic assets"

A fairly casual occurance with gas/oil companies sometimes they buy more assets they need , as it costs them $$$ to maintain or service the facilities on year by year basis
 
Not sure whether It's true but I heard Chevron had some problems with BD govt....the govt made chevron abandon many of their projects in BD
 
For American companies far away oil and gas fields become unuseful after shale technology development, now they themself become new SA. extracting oil at very cheep cost. Also noway in nere future this commodity price can run unlike in past again thanx to shale tech.
 
This is good or bad for Bangladesh?
Somewhat bad. Bad cuz we don't have control over the production rate. Gov. now can't cut production if domestic demand falls. It's important as these companies can export gas then, since due to low demand we won't be able to buy them; thus losing mineral resources in process.

Another bad is, when sea blocks starts production supply will rise, thus meeting the demand. But when the production rate increases, but no/low demand inside the country, companies will export them since petrobangla won't be able to buy. Having control over inshore/land production means when offshore production rises, we can easily cut inshore production, thus creating a pseudo demand & buy out total offshore production & prevent export of valuable mineral resources.

Not sure whether It's true but I heard Chevron had some problems with BD govt....the govt made chevron abandon many of their projects in BD
It's true that BD gov. & Shevrone despised each other. Gov. due to some very valid reasons.

Wait so we bring in foreign companies to extract the resources and then buy it from them? Wtf. This is moronic
Yes, it is. But don't tell that publicly, some resident "energy experts" will call you Anu -r chela, ignorant & what not.

No it's not moronic, it's because you Banglas don't have the capability to do it on your own.
Search 'BAPEX'.
 
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It's true that BD gov. & Shevrone despised each other. Gov. due to some very valid reasons.

I heard Chevron is responsible for causing huge environmental hazards in their drilling projects.

I do think PetroBangla should seriously consider acquiring these assets, this is huge and we should keep control on our resources.
 
I heard Chevron is responsible for causing huge environmental hazards in their drilling projects.

I do think PetroBangla should seriously consider acquiring these assets, this is huge and we should keep control on our resources.

These multinational companies are East India Company 2.0 :tdown:

PetroBangla is interested. Energy advisor to PM &Energy Minister both said that publicly. They also hired some firm for valuation of the assets. No news since then. Lots going behind the curtain for sure.
PetroBangla has the right to first refusal. Shevron is probably trying to stay ahead of the red tape, so IF
PetroBangla refuse, they can instantly sign the deal. These might take rest of the year to well into 2018. Take a nap. :lazy2:
 
As long as it goes to the Chinese it's fine.

Yeah the BD people and economy can be exploited just like by Chevron....as long as the Chinese are happy.

Who gives a damn about actually developing any indigenous know how...esp when you got 175 million people (3 times that of the UK).

Oh wait RMG is the eternal saviour, nvm.

Then you wonder why folks like @Mohammed Khaled flee the country and earn their keep where people have use for higher but pretty standard level know-how.
 
Yeah the BD people and economy can be exploited just like by Chevron....as long as the Chinese are happy.

Who gives a damn about actually developing any indigenous know how...esp when you got 175 million people (3 times that of the UK).

Oh wait RMG is the eternal saviour, nvm.

Then you wonder why folks like @Mohammed Khaled flee the country and earn their keep where people have use for higher but pretty standard level know-how.

I see little evidence of any more than
average intelligence from you.
All you do is regurgitate what you read.

BD is way better than the mess that is India.
which will inevitably disintegrate.
 

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