TDS Desk:

The Energy and Mineral Resources Division has moved to re-examine an investment proposal submitted by Chevron Bangladesh Limited as part of efforts to expand domestic gas exploration. A three-member review committee was formed on November 12 to assess the proposal, with Mohammad Mohsin, a former secretary and current chairman of Bangladesh Gas Fields Company Limited, as the chair. Its members are BAPEX Chairman Istiaque Ahmad and Abul Mansur Md Faizullah, chairman of Sylhet Gas Fields Limited. The panel will review Chevron’s investment proposal alongside a report prepared by an earlier committee set up by Petrobangla, and submit its findings to the energy division.
An office order signed by Energy Division Deputy Secretary Ahmed Ziaur Rahman said the committee would examine the proposal in light of existing laws and regulations, as well as the earlier Petrobangla review, before submitting recommendations. The order, however, does not set a deadline for the report.
A member of the committee, speaking on condition of anonymity, said the review was under way and that national interest considerations were being weighed. The government has not specified a timeline, the member said, but the report would be submitted soon.
Chevron Bangladesh is seeking sole operatorship over onshore blocks 11 and 12, covering a combined area of 6,226 square kilometres, where it plans to conduct fresh exploration. The proposal is not tied to any tender process. The multinational has expressed interest in securing the work under a special legal framework that has since been repealed.
Chevron formally submitted the proposal to the energy division on December 4, 2024. At the time, Petrobangla accepted the submission and indicated that, if a tender were issued under the onshore production sharing contract framework, Chevron would be invited to participate. No such tender was ultimately floated. Since then, Petrobangla has evaluated the proposal at different stages, alongside continued engagement from Chevron. Officials at Petrobangla declined to explain why the proposal is now being reviewed afresh.
Petrobangla Director (PSC) Engineer Md Shoaib told journalists that EMRD has formed a high-level committee to examine Chevron’s proposal and that the committee is currently at work.
Areas under Habiganj, Moulvibazar, and Jalalabad gas field in Sylhet are divided into three exploration blocks, numbered 12, 13 and 14, where Chevron is already conducting exploration and production. The company previously relinquished exploration rights over parts of Block 12. It now plans to resume exploration and subsequent development in those relinquished areas, as well as in Block 11, which covers parts of Sunamganj, Sherpur, and Mymensingh.
A senior official familiar with the matter said Chevron’s proposal was not new and had circulated repeatedly at the highest levels of government over time. The source said interest in the proposal has intensified again in recent weeks. However, with the repeal of the special act, Chevron no longer has a pathway to secure the work on a sole-operator basis.
Discussions with Petrobangla officials indicate that the issue goes beyond the absence of a competitive tender. Chevron has also proposed a revised gas pricing mechanism. The company is seeking to apply an offshore-style pricing model to onshore gas fields, which officials say would lower risk for the operator and be more commercially attractive. Under Chevron’s proposal, pricing would follow the Offshore Model PSC 2023 framework, pegged at 10 percent of Brent crude. At a Brent price of $100 a barrel, gas would be priced at $10 per Mcf. Chevron currently sells gas from Bibiyana at $2.76 per Mcf.
Chevron currently produces gas in Bangladesh from the Bibiyana, Moulvibazar, and Jalalabad fields. Contracts for Bibiyana and Jalalabad run until 2034, while the Moulvibazar contract expires in 2038. Combined output from the three fields stands at roughly 1,000 million cubic feet a day. This accounts for more than 38 percent of the national gas supply. The company is seeking to expand exploration acreage as part of broader efforts to support growth in the gas sector.
Gas supply continues to fall short of demand. Officials estimate the current shortfall at more than 1,200 million cubic feet a day. Despite sustained efforts over several years, Petrobangla has been unable to close the gap to expected levels.
Tenders have been floated to expand offshore exploration. No companies, however, submitted bids. Petrobangla is unable to provide a timeline for fresh tenders. In this context, Chevron Bangladesh remains the largest single supplier of gas to the domestic market. Several energy experts argue that the proposal from a long-established foreign operator could be considered as part of efforts to ease the gas crunch, provided national interests are protected.
Professor Badrul Imam, a geologist and energy specialist, told journalists, “The government should welcome interest from major companies in onshore gas exploration. Specially, proposals from firms with proven expertise and a clean global track record should be considered, given the urgency of supply. Faster access to domestic gas would help reduce reliance on expensive imported LNG and save foreign currency.”
Petrobangla’s senior leadership has declined to explain why the proposal for awarding work without a tender has resurfaced or whether Chevron will ultimately be approved. On the matter, Petrobangla Chairman Md Rezanur Rahman said that a committee was reviewing the issue and that decisions would follow once its report is submitted.