Selling out Bangladesh assets to Chinese co
Govt irked over Chevron move
SHAHED SIDDIQUE and FAISAL MAHMUD
US oil giant Chevrons deal to sell out its Bangladesh assets to a Chinese company has irked the government as the international oil company (IOC) took the move even without responding to a Bangladesh offer for buying the assets, sources concerned said. Recently, Chevron inked a preliminary deal with Chinas state-run Zhenhua Oil for the transfer of its ownership of gas fields in Bangladesh.
Highly-placed sources in the power, energy and mineral resources ministry said the Bangladesh government felt embarrassed by the Chevron move as the IOC took the decision without responding to Bangladeshs offer for buying these assets.
The government did not take the issue in goodwill that Chevron has struck a deal with another company without even replying to Bangladeshs offer, said a Petrobangla official on condition of anonymity.
However, talking to The Independent, state minister for power, energy and mineral resources Nasrul Hamid Bipu said the
government was interested in purchasing Chevrons assets.
Thats why we gave an offer to Chevron earlier, but it didnt respond to us, he said.
Sources said both the ministry and Petrobangla refused to meet a high-level delegation from Chevrons US headquarters, which sought to consult with the government about the deal with the Chinese company.
In respect to this development, Nasrul Hamid said, They sought to meet me, but I declined, since the ministry is yet to get any response from them regarding our proposal.
A high-ranking official from Petrobangla said, As per the production sharing contract (PSC), Chevron can sell its assets to whoever it wants, but the sellout is subject to government approval. If the government is not fully convinced with the handover, considering various issues, the government has the capacity to block such a sellout.
The estimated value of the gas fields, which includes Bibiyana, the largest gas field of Bangladesh, is USD 2 billion. Those gas fields account for more than half of the countrys production.
Chevron has been operating three gas fields in the country: Bibiyana, Jalalabad and
Moulvibazar. Production from those gas fields stands at 720 million cubic feet of natural gas and 3,000 barrels of condensate.
In October last year, the government showed interest to buy Chevron-owned gas fields because it was a matter of national interest, and a purchase was on the table, said sources at the ministry.
It may be mentioned that though the UK-based Tullow Oil inked a deal with Singapore-based Kris Energy for selling out Bangora gas field in Bangladesh two years ago, the deal still remains ineffective as the Bangladesh government did not give its approval.
Meanwhile, employees of Chevron Bangladesh complained that four months since the US firm disclosed its sellout plans, it has not made any commitment to the employees about how the transition would take place.
The Chevron Bangladesh Employees Union, in a recent statement, said the companys 571 national employees were being kept in the dark and that they faced uncertainty about their lives and careers.
Commenting on the issue, Chevrons Dhaka office told 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.
