Chevron to conduct seismic survey in Block 7 in Dec

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FE Report
The US-based Chevron Bangladesh will start conducting seismic survey in Block 7 from next month to delineate potential gas reserves and initiate subsequent exploration, officials said Monday.
The company will continue the two-dimensional (2D) survey until mid 2009 in the block that covers the southwestern districts of Barisal, Potuakhali, Jhalakathi and Pirojpur.
The Chevron Bangladesh Block Seven Ltd, a sister concern of the Chevron Bangladesh, signed an addendum to the production sharing contract (PSC) for Block 7 with the state-owned Petrobangla recently.
"Chevron will conduct the seismic survey and drill an exploratory well in the block area by 2011 according to the agreement," Petrobangla director for PSC Major (retd) Muqtadir Ali told the FE Monday.
He said further development works in the field like exploration of hydrocarbon would depend on the findings of the seismic survey.
Chevron has already relinquished 25 per cent of the exploration acreage of the Block 7 areas to Petrobangla in accordance with the PSC, said the company official.
The seismic survey would delineate features of interest that were identified by a regional seismic programme acquired in 2006.
The project will consist of 450 kilometres of two-dimensional seismic data acquisition fulfilling one of the work programme commitments by Chevron to the Bangladesh government.
Chevron Bangladesh has 90 per cent stake as the operator, while the state-owned Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX) owns the remaining 10 per cent in block seven.
Chevron will undertake all exploration risk under the PSC, while the BAPEX would be responsible for its share of costs only after commercial discovery of gas and initiation of the output.
Regarding the seismic survey the Chevron Bangladesh president Steve Wilson told the newsmen: "The seismic program in Block 7 aims to identify new reserves in order to increase the energy supply to Petrobangla."
He said Chevron is committed to continuing its effort to expand its exploration program to ensure future energy security of the country. "We look forward to working closely with Petrobangla and BAPEX with a view to developing the energy sector safely and in an environmentally responsible manner," the Chevron chief in Bangladesh added.
Chevron is currently producing about 40 percent of the country's total gas consumption of 1800 million cubic feet per day from its three fields - Jalalabad, Moulavi Bazar and Bibiyana.