Chevron Seeks Approval for Fresh Bangladesh Investment Proposal
Chevron's renewed investment proposal in Bangladesh has been sent to Petrobangla for review. The US multinational aims to increase gas production from block-11 and block-12 by drilling new wells. Chevron is currently investing $65 million in a compression station near the Jalalabad gas field, which is expected to be completed within 30 months.
The company has expressed interest in making further investments in these onshore areas, particularly in block-11, to boost Bangladesh's natural-gas output amidst an energy crisis. Sources suggest that Chevron plans to pour at least $500 million into these blocks.
Chevron has sought a gas price linked to the Brent Crude market rate, which would be around 10% of the Brent Crude price. This would make the current price for natural gas approximately $9.0 per cubic meter, nearly three times higher than the current price at which Chevron sells gas to Petrobangla from existing fields.