Chevron Bangladesh sell-out

Govt plans to appoint administrator

The government is going to appoint an administrator to monitor all activities relating to the share transfer of Chevron Bangladesh, a top official of state-run energy company Petrobangla told The Independent yesterday. “Till now, we don’t know anything. We don’t know what is happening inside the Chevron office in Bangladesh. So, we have decided to send someone to monitor all of its activities here,” said Petrobangla Chairman Abul Mansur Mohammed Faijullah.
The decision to appoint the administrator comes on the heels of a row between the global energy giant and the government over the sell-out of Chevron’s Bangladesh operations.
The government apparently went ‘tough’ over the issue as Chevron recently struck a primary deal with a Chinese company to handover its share ‘ignoring’ the government’s formal offer to take Chevron stake. Chevron Bangladesh president Kevin Lyon, meanwhile, is learnt to have set an appointment with Petrobangla chairman Abul Mansur today to inform its preliminary deal with China’s state-run Zhenhua Oil.
“I don’t know what the issue for the meeting would be, but I guess the share transfer would be the main agenda,” the Petrobangla chairman said.
“I don’t have any information about the meeting. We can officially tell you that we have not been informed about the deal by our head office yet,” Chevron spokesperson Sheikh Zahidur Rahman told The Independent.
Petrobangla and Chevron officials said the local office will inform the Bangladesh government by this week, on behalf of the head office. It will also submit all relevant documents to Petrobangla, as per the production sharing contract (PSC). “After receiving the documents, the government would not only appoint an administrator, but also devise a strategy on the issue. Hence, the next few months are very important for Petrobangla,” disclosed a government official.
Last year, international media reported that US oil giant Chevron would sell its Asian assets. On the basis of this information, the Bangladesh government evinced interest to buy the company’s assets of three gas fields, in which Chevron has 30 per cent share and the Bangladesh government 70 per cent. But Chevron did not reply to the government over the past four months. In the meantime, it struck a deal with China’s state-run Zhenhua Oil for the transfer of its ownership of gas fields in Bangladesh.
The deal irked the government. It is annoyed with Chevron’s attitude as it did not adequately honour the Energy Division. The state minister for power, energy and mineral resources, Nasrul Hamid, said last week: “They sought to meet me, but I declined, since the ministry is yet to get any response from them regarding our proposal.”
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 evinced interest to purchase the Chevron-owned gas fields because it was a matter of “national interest” and a purchase was “on the table”, said sources at the ministry.

 

 

Chevron Bangladesh sell-out

Govt plans to appoint administrator

The government is going to appoint an administrator to monitor all activities relating to the share transfer of Chevron Bangladesh, a top official of state-run energy company Petrobangla told The Independent yesterday. Till now, we dont know anything. We dont know what is happening inside the Chevron office in Bangladesh. So, we have decided to send someone to monitor all of its activities here, said Petrobangla Chairman Abul Mansur Mohammed Faijullah. The decision to appoint the administrator comes on the heels of a row between the global energy giant and the government over the sell-out of Chevrons Bangladesh operations. The government apparently went tough over the issue as Chevron recently struck a primary deal with a Chinese company to handover its share ignoring the governments formal offer to take Chevron stake. Chevron Bangladesh president Kevin Lyon, meanwhile, is learnt to have set an appointment with Petrobangla chairman Abul Mansur today to inform its preliminary deal with Chinas state-run Zhenhua Oil. I dont know what the issue for the meeting would be, but I guess the share transfer would be the main agenda, the Petrobangla chairman said. I dont have any information about the meeting. We can officially tell you that we have not been informed about the deal by our head office yet, Chevron spokesperson Sheikh Zahidur Rahman told The Independent. Petrobangla and Chevron officials said the local office will inform the Bangladesh government by this week, on behalf of the head office. It will also submit all relevant documents to Petrobangla, as per the production sharing contract (PSC). After receiving the documents, the government would not only appoint an administrator, but also devise a strategy on the issue. Hence, the next few months are very important for Petrobangla, disclosed a government official. Last year, international media reported that US oil giant Chevron would sell its Asian assets. On the basis of this information, the Bangladesh government evinced interest to buy the companys assets of three gas fields, in which Chevron has 30 per cent share and the Bangladesh government 70 per cent. But Chevron did not reply to the government over the past four months. In the meantime, it struck a deal with Chinas state-run Zhenhua Oil for the transfer of its ownership of gas fields in Bangladesh. The deal irked the government. It is annoyed with Chevrons attitude as it did not adequately honour the Energy Division. The state minister for power, energy and mineral resources, Nasrul Hamid, said last week: They sought to meet me, but I declined, since the ministry is yet to get any response from them regarding our proposal. 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 evinced interest to purchase the Chevron-owned gas fields because it was a matter of national interest and a purchase was on the table, said sources at the ministry.