The Energy Division has formed a committee to review the US oil giant Chevron's 'stubborn demand' to get a formal access in the onshore gas Blocks-11 and 12 in northeastern of Bangladesh, earmarked for the state-owned Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX).
On Wednesday (Novem-ber 28), Energy Division formed a 3-member committee named Mohammad Mohsin, Chairman Bangladesh Gas Field Company and former secretary Energy Division as convener, the other two members are existing secretary of the Energy Division and a former additional secretary.
Chevron wants to work on Blocks-11 and 12 for many years, Petrobangla rejected the plea in January, 2025, however, we formed a committee once again to examining their proposal, a senior official of the Energy Division has told the daily Observer on Thursday did not wants to disclose his name.
According to the sources concerned, the US Company is now conducting a survey in the Surma basin.
Sources said Chevron Bangladesh's investment proposal worth around $500 million to develop the onshore hydrocarbon block-11 and attain exploration rights over an extended area of block-12 in the Surma basin is currently pending with Petrobangla for approval. The gas-rich Surma basin is situated in the country's northeast, and the region contributes much of the natural gas in the national grid.
Chevron also intends to get the field under unsolicited deal. Previously, Chevron received Jalalabad Gas Field under Block-13 under an unsolicited deal.
Industry insider said, as per production sharing contract (PSC) the government cannot allow Chevron with for a new arrangement as the interim government has scraped the "Quick Enhancement of Electricity and energy supply (Special Provision) Act,2010", a controversial law used to fast-track power projects by bypassing standard procedures and tenders. If in Chevron's case the government allows them then it would be a gross irregularity as per the White Paper Committee. The Act was suspended in August 2024 and officially repealed in December 2024 by an ordinance.
"In its plea, Chevron wants to use the model PSC-2023, which was made for offshore blocks (as the risk of the company is high in offshore areas) the price was low…according to the 2023 PSC the price of gas was $US 5.6 to $US 7.25 per unit but for onshore blocks or the existing contract with Chevron, Bangladesh is being paying $US 2.76 for per unit gas…..why Bangladesh would pay more, or how do we justify the issue is a million dollar question," official said.
Since 2023, Chevron is demanding the blocks, but recently it takes different momentum, he added.
According to the proposal, Chevron sought permission from the government to develop around 6,000 square kilometres across the two blocks under 'special consideration.'
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.
