China firm in deal to buy Chevron Bangladesh

Major gas fields in Bangladesh, operated by the US oil company Chevron is likely to go under the ownership of China's state-run Zhenhua Oil as both parties have signed a preliminary deal for the transformation of ownership, agencies reported.

The estimated value of the gas fields $2 billion. The largest gas field in Bibiyana is also included in the list.
When asked about the preliminary deal, Chevron’s Dhaka office said in a statement to The Independent, “We can confirm that Chevron has been in commercial discussions about our interests in Bangladesh. We will not comment on negotiations as a matter of long-standing policy.”
About the possible deal between these two energy giants of two superpowers about the gas fields in Bangladesh, Nasrul Hamid, state minister for power, energy and mineral resources of Bangladesh, said that the government of Bangladesh has no interference there.
“It’s an issue between the two companies,” he said.
It is to be noted that On October 14, last year, Nasrul Hamid told the media that the Bangladesh government had offered to purchase all the natural gas assets of US energy giant Chevron in Bangladesh. 
“We're interested in buying the assets. It'll be a big opportunity for us to have the entire production of the three gas fields.”
“I extended an offer to Chevron to buy the assets and was assured that its local office will talk to the headquarters on the interest shown by the Bangladesh government”, Nasrul told The Independent then.
When reminded about that, he said, “Let’s see what happens. The deal between Zhenhua Oil and Chevron hasn’t finalized yet.”
Meanwhile, Reuters reported-Zhenhua is a subsidiary of China's defense industry conglomerate NORINCO. A completed deal would mark China's first major energy investment in the South Asian country, where Beijing is competing with New Delhi and Tokyo for influence.
Bangladesh, though, holds the right of first refusal on the assets and could block the transaction. The country, via its national oil company Petrobangla, is keen to buy the gas fields and is talking to international banks to raise financing, according to a banking source familiar with the process.
Bangladesh is in the process of hiring global energy consultant Wood Mackenzie to assess the fields' reserves before placing a formal bid to buy the assets, two Bangladesh sources familiar with the matter told Reuters.
The Bangladesh sources said they were not aware of Zhenhua Oil's competing interest in the Chevron fields.
“As this project is in the process of commercial discussions, we can’t comment based on our company policy,” said Zhang Xiaodi, Zhenhua Oil’s spokesman.

China firm in deal to buy Chevron Bangladesh

Major gas fields in Bangladesh, operated by the US oil company Chevron is likely to go under the ownership of Chinas state-run Zhenhua Oil as both parties have signed a preliminary deal for the transformation of ownership, agencies reported. The estimated value of the gas fields $2 billion. The largest gas field in Bibiyana is also included in the list. When asked about the preliminary deal, Chevrons Dhaka office said in a statement to The Independent, We can confirm that Chevron has been in commercial discussions about our interests in Bangladesh. We will not comment on negotiations as a matter of long-standing policy. About the possible deal between these two energy giants of two superpowers about the gas fields in Bangladesh, Nasrul Hamid, state minister for power, energy and mineral resources of Bangladesh, said that the government of Bangladesh has no interference there. Its an issue between the two companies, he said. It is to be noted that On October 14, last year, Nasrul Hamid told the media that the Bangladesh government had offered to purchase all the natural gas assets of US energy giant Chevron in Bangladesh. Were interested in buying the assets. Itll be a big opportunity for us to have the entire production of the three gas fields. I extended an offer to Chevron to buy the assets and was assured that its local office will talk to the headquarters on the interest shown by the Bangladesh government, Nasrul told The Independent then. When reminded about that, he said, Lets see what happens. The deal between Zhenhua Oil and Chevron hasnt finalized yet. Meanwhile, Reuters reported-Zhenhua is a subsidiary of Chinas defense industry conglomerate NORINCO. A completed deal would mark Chinas first major energy investment in the South Asian country, where Beijing is competing with New Delhi and Tokyo for influence. Bangladesh, though, holds the right of first refusal on the assets and could block the transaction. The country, via its national oil company Petrobangla, is keen to buy the gas fields and is talking to international banks to raise financing, according to a banking source familiar with the process. Bangladesh is in the process of hiring global energy consultant Wood Mackenzie to assess the fields reserves before placing a formal bid to buy the assets, two Bangladesh sources familiar with the matter told Reuters. The Bangladesh sources said they were not aware of Zhenhua Oils competing interest in the Chevron fields. As this project is in the process of commercial discussions, we cant comment based on our company policy, said Zhang Xiaodi, Zhenhua Oils spokesman.