Chevron wants a formal access from the Ministry of Energy and Mineral Resources to develop the onshore gas Blocks-11 and 12 in northeastern Bangladesh earmarked for the state-owned Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX).
Javier La Rosa, Chevron's newly appointed President of Base Assets and Emerging Countries, made the request to the Power and Energy Adviser Dr Fouzul Kabir Khan during an official visit to Dhaka recently.
Chevron sought permission from the government to develop around 6,000 square kilometres across the two blocks under 'special consideration.'
"Chevron wants to work on Blocks-11 and 12, and we are examining their proposal," Dr Fouzul Kabir Khan told media.
However, the state owned company, BAPEX has already undertaken a programme to drill four exploratory and development wells - Sunetra-2, Sunetra East-1, Madan-1, and Madan-2 - under Block 11 in the Surma Basin.
Chevron's proposal has raised concerns over potential overlaps with existing exploration initiatives by BAPEX and Sylhet Gas Fields Ltd (SGFL).
"Energy Division officials informed it to the Chevron officials during the meeting, they also confirmed that SGFL, another state-owned company, has begun its own exploration activities in Block-12, which the Petrobangla previously rejected," officials said preferring anonymity.
According to the sources concerned, the US Company is now conducting a survey in the Surma basin of Bangladesh's largest gas prospect at Block-11, 12, 13 and 14.
Chevron also intends to get the field under unsolicited deal. The blocks- 12, 13, 14 are now operated by the company. Previously, Chevron has received Jalalabad Gas Field under Block-13 under an unsolicited deal.
Onshore Block-11 is one of the two blocks that were kept ring-fenced for development by state-owned BAPEX. A Japanese hydrocarbon-exploration company Mitsui Oil Exploration Company Ltd (MOECO) eyes exploration of onshore Block-11 under joint venture with state-run BAPEX.
MOECO had carried out a joint study along with Petrobangla, BAPEX and Bangladesh Petroleum Institute and spotted two prospective locations -- Madarganj and Jamalpur in Blocks-8 and 11.
Chevron has been a key player in Bangladesh's energy sector for decades, with over US$4.2 billion invested in infrastructure. Of that, more than $634 million has been spent through local suppliers, significantly contributing to the country's foreign exchange reserves.
Chevron had earlier submitted an unsolicited proposal to Petrobangla, suggesting a pricing formula tied to international Brent crude oil-equivalent to 10 per cent of the benchmark rate.
Business insider has said that the proposal faces significant legal and regulatory challenges. As the government has suspended the Speedy Supply of Power and Energy (Special Provisions) Act.
"The government will need to explore legal avenues to implement this proposal," Dr Kabir added.
