Chevron Announces Inauguration of the World-Class Bibiyana Gas Field
Project Slated to be a Leading Supplier of Gas
SAN RAMON, Calif. and Dhaka, Bangladesh, March 18, 2007 -- Chevron Corporation (NYSE: CVX) today announced the inauguration of the Bibiyana natural gas field, which is located onshore in Block 12 in the northeast of Bangladesh in Habiganj District.
Bibiyana, one of the largest gas fields in Bangladesh, is expected to initially produce 200 million cubic feet of natural gas per day (mmcfd). The plant's full capacity of 600 mmcfd is scheduled to be available by late 2007, with the field reaching maximum total production of 500 mmcfd by 2010. Once full production is realized, Bibiyana is set to become the largest producing gas field in the country.
Speaking during the inauguration ceremony at the Bibiyana field, John Watson, president, Chevron International Exploration & Production, said, "Achieving first gas at Bibiyana is a significant milestone for Chevron and demonstrates the company's ability to select and execute major capital projects.
"Bibiyana is a world-class gas resource that is expected to supply reliable, clean energy for the next 20 to 30 years," he said.
The project includes 12 development wells, a gas plant, a natural gas pipeline and a condensate pipeline. The company has signed a gas purchase and sales agreement with Petrobangla, the state owned oil and gas company.
Managing Director and President of Chevron Bangladesh Andrew Fawthrop said, "The Bibiyana project was a huge undertaking that demonstrates our ability to bring online technically complex projects in challenging circumstances. We extend our gratitude to our employees, the government, Petrobangla, local contractors and the community for working with us to reach this landmark achievement.
"Chevron is proud of our record at Bibiyana, where Bangladeshi contractors have performed more than 10 million man hours of project-related civil works, pipeline and gas plant construction without any major incident. At peak construction, the project employed more than 2,000 Bangladeshi workers through Bangladeshi contractors," said Fawthrop.
Chevron holds interests in three production sharing contracts in Bangladesh, encompassing more than 10,000 square kilometres (2.47 million acres). Chevron Bangladesh has a 98 percent working interest in Bibiyana, and Jalalabad and Moulavi Bazar fields, which combined these two fields average total production of 330 mmcfd. Chevron also has a 43 percent interest in Block 7 in southern Bangladesh where the company conducted seismic survey in 2006.
In early 2006, Chevron supplied 20 percent of Bangladesh's natural gas market and this is expected to increase to over 30 percent when peak production is realized at Bibiyana.
The Bibiyana inauguration event was attended by Dr. Fakhruddin Ahmed, the Honorable Chief Adviser of the Caretaker Government; Tapan Chowdhury, Power and Energy Adviser; Patricia A. Butenis, U.S. Ambassador to Bangladesh; A.M.M. Nasir Uddin, Secretary, Energy & Mineral Resources Division; John Watson, President, Chevron International Exploration & Production; and Andrew Fawthrop, Managing Director and President of Chevron Bangladesh.
Chevron Corporation is one of the world's leading energy companies. With approximately 56,000 employees, Chevron conducts business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.
Cautionary Statement Relevant to Forward-Looking Information for the Purpose of "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995.
Some of the items discussed in this press release are forward-looking statements about Chevron's activities in Angola. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in demand for and supply of crude oil and natural gas; results of additional testing; selection and successful execution of development plans; actions of competitors; the potential disruption or interruption of project activities due to war, accidents, political events, civil unrest or severe weather; and general economic and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Updated: March 2007