Exploration and Production
Chevron supports Bangladesh's goal of maximizing the nation's energy potential by actively investing in projects that deliver more gas to Petrobangla, the national oil company. Toward that end, we have developed natural gas production in three main fields: Jalalabad, Moulavi Bazar and Bibiyana. In 2008, total daily production averaged 698 million cubic feet of natural gas and 5,000 barrels of condensate. Chevron's net production of oil-equivalent was 71,000 barrels per day.
Producing Natural Gas in Jalalabad
Chevron operates the Jalalabad gas field, which is located in northeastern Bangladesh. The company has a 98 percent interest in the production-sharing contract covering the Jalalabad Field, which lies in Block 13. The processed natural gas is transported by pipeline to Petrobangla. Condensate from the field is used to make products such as gasoline and diesel fuel.
Since its inception in 1999, Jalalabad has doubled its production to meet the growing energy demand in the country. The field also has become one of the most cost-effective sources of energy for Bangladesh, producing near full capacity since 2001.
Delivering Efficiently in Moulavi Bazar
Chevron produces natural gas from the Moulavi Bazar Field, which is located in Block 14 in northeastern Bangladesh. A production-sharing contract with Petrobangla provides Chevron with a 98 percent interest in the field. We operate the field, which has been producing near full capacity since 2005.
In 2008, a seismic survey for Moulavi Bazar was completed. Plans call for processing the seismic data and further geologic studies.
Putting Innovation to Work in Bibiyana
In 2007, Chevron capped a major two-year development program by launching production from the Bibiyana natural gas field, located in northeastern Bangladesh.
The project is one of the most significant natural gas field discoveries in Bangladesh in terms of both quality and size of the reserve, which was discovered in 1998. Chevron signed a gas purchase and sales agreement with Petrobangla in 2004. We operate Bibiyana and hold a 98 percent interest in the production-sharing contract covering Block 12, where the field is located.
For the first time in Bangladesh, we applied 3-D seismic and thin-bed imaging technologies to determine reserves. Total development cost for the project, including 12 development wells, was approximately $245 million. The development program included a gas processing plant with a capacity of 600 million cubic feet per day and a natural gas pipeline to connect the field to the national natural gas transmission grid.
Exploring Block 7
In 2008, Chevron expanded its stake in the production-sharing contract covering Block 7 to 88 percent. We operate the project, which lies in the southwest region of Bangladesh.
In June 2008, Chevron reached an agreement with Petrobangla and the Bangladesh Energy Ministry to extend the evaluation of the Block 7 exploration prospect. Additional seismic work and one exploration well are required by 2011.
Pipelines Connecting Supply and Demand
Chevron operates a 27-mile (43-km) natural gas pipeline, which connects the Bibiyana Field to Petrobangla. Its construction required us to overcome a number of challenges, among them the weather. To avoid the monsoon season, we managed to install the entire pipeline within a six-month window. The pipeline has a 600 million-cubic-foot-per-day capacity.
Updated: March 2009