Chevron Corporation, the US based oil giant has started negotiation with the state-run Petrobangla for the approval of its disputed share transfer procedure. A high-level delegation from Chevron sat on a meeting with Petrobangla regarding this issue on Wednesday at the Petrocentre of the capital.
After the meeting, Petrobangla chairman Abul Monsur Md. Fayjullah told the newsmen that, Chevron was being questioned about the transfer of its share transfer without any approval or consent from the Petrobangla. He said that, the asset-valuation report on Chevron’s asset in Bangladesh is ready and now it is awaiting the final assessment from the government to come to any final decision. He informed the media that, the government would take a decision regarding Chevron as per the law. However, he didn’t remark anything about that law. The Petrobangla chairman said that, the issue would require a few more meetings to be settled.
According to the Production Sharing Contract (PSC) that was signed between Petrobangla and Chevron- the US based giant must seek approval from the state-run Petrobangla before it wishes to proceed with transferring or selling its share to anyone. However, as reported, Chevron hasn’t asked for any permission from Petrobangla and already have agreed to transfer its share to a Chinese farm named Himalaya Energy Company Limited.
Earlier on October of the last year, Chevron declared that it would sell out its assets by 2017 roughly worth $10 billion in Bangladesh, Indonesia and Thailand to cover the losses that were incurred by the global slump in energy prices in the recent years. In a press note sent to the media in April of this year, Chevron declared that it would sell all of its share of the gas fields of Bibiyana, Jalalabad and Moulavi Bazar. Bibiyana gas field has a remaining gas reserve of around 3043 bcf. The gas reservoirs in Jalalabad (89.91bcf) and Moulvibazar (130.90bcf) are insignificant compared to Bibiyana and the production from all of these fields might start to deplete from 2018-2019.