Chevron seeks to raise gas output by 25pc next year

US oil giant Chevron is eyeing an increase in its overall natural gas output in the country by 25 per cent within 2015 with the inauguration of the Bibiyana gas plant expansion project due for next month, a top official said Thursday.
Chevron's overall gas production in Bangladesh is set to be increased to 1,492 million cubic feet per day (mmcfd) from the current level of around 1,192 mmcfd.
Prime Minister Sheikh Hasina is expected to inaugurate the first production from the Bibiyana expansion project early next month at a function at Bibiyana of Nabiganj in northeastern Sylhet district.
Chervon-operated Bibiyana is the largest producing gas field in Bangladesh with the current average output of around 850 mmcfd from 17 producing gas wells.
Chevron in July 30, 2012 had announced a US$500 million Bibiyana investment plan, which includes a gas plant expansion, new development wells and an enhanced liquids recovery unit.
Apart from increasing the total daily production by more than 300 mmcfd from Bibiyana, Chevron is expected to produce 4,000 barrels of condensate daily from the field.
A senior Petrobangla official said, Chevron has recently proposed to drill three new development wells in its Jalalabad gas field in Sylhet.
The US firm has proposed to invest $130 million in Jalalabad growth project and increase natural gas output further by 90 mmcfd, said the official.
Jalalabad Gas Field is currently producing around 230 mmcfd of gas from four wells.
"We are scrutinising Chevron's proposal," Petrobangla Chairman Dr Hussain Monsur said.
Chevron Bangladesh refused to comment on it on Thursday.
Chevron is the largest gas-producing international oil company in Bangladesh and produces most of the country's natural gas.
As on October 14, natural gas output from its three producing gas fields stood at 1,192 mmcfd, which is 49.87 per cent of the country's total output of 2,390 mmcfd.
Chevron has a 100 per cent interest in Bibiyana, Jalalabad and Moulavi Bazar gas fields in onshore blocks 12, 13 and 14 respectively, located in northeastern Bangladesh.
Chevron, along with other operating international oil companies (IOCs), has long been asking for onshore blocks afresh for investment by them.
Bangladesh did not offer any onshore oil and gas block after the country's second biding round for hydrocarbon exploration in 1997, a senior Petrobangla official said.
Chevron's predecessor Occidental was awarded all the three onshore blocks in Bangladesh during the country's first bidding round in 1993 when a total of 23 blocks, both onshore and offshore, were offered.
Ownership of these blocks was later shifted to Unocal and then to Chevron.
Chevron sells gas from three of its producing fields to state-owned Petrobangla at an average tariff rate of US$2.687 per 1,000 cubic feet (1Mcf) under the existing PSC, said a senior Petrobangla official.

azizjst@yahoo.com