{"id":32685,"date":"2017-04-25T04:42:29","date_gmt":"2017-04-25T04:42:29","guid":{"rendered":"http:\/\/en.bornomalanews.com\/?p=32685"},"modified":"2017-04-25T04:42:29","modified_gmt":"2017-04-25T04:42:29","slug":"chevron-to-sell-bangladesh-gas-fields-to-chinese-consortiu","status":"publish","type":"post","link":"https:\/\/en.bornomalanews.com\/?p=32685","title":{"rendered":"Chevron to sell Bangladesh gas fields to Chinese consortiu"},"content":{"rendered":"

\"Chevron-690x450\"ZhenHua Oil had signed a preliminary deal with Chevron to buy the Bangladesh natural gas fields in February<\/h2>\n
Chevron Corp is selling its three Bangladesh gas fields, worth an estimated $2 billion, to a Chinese consortium as the U.S. oil and gas group looks to shed non-core assets this year.<\/div>\n
<\/div>\n
\n

The deal, if completed, would mark China\u2019s first major energy investment in the South Asian country, where Beijing is pumping in billions of dollars in a race with New Delhi and Tokyo for influence.<\/p>\n

The gas fields, which account for more than half of the total gas output in Bangladesh, are being sold to Himalaya Energy, Chevron said. Himalaya is owned by a consortium comprising state-owned China ZhenHua Oil and investment firm CNIC Corp.<\/p>\n

CNIC, set up in Hong Kong in 2012, is a government investment platform that focuses on supporting Chinese companies\u2019 overseas investment.<\/p>\n

Reuters reported in February that ZhenHua Oil had signed a preliminary deal with Chevron to buy the Bangladesh natural gas fields.<\/p>\n

\u201cThe agreement is for the sale of Chevron\u2019s Bangladesh companies, which hold our interests in Bangladesh,\u201d a company spokesman told Reuters by email on Monday. \u201cThe value of the transaction is not being disclosed and we are not at liberty to share the details of the agreement.\u201d<\/p>\n

A ZhenHua spokesperson confirmed the agreement, adding that the closing of the deal would depend on approval from China\u2019s Ministry of Commerce.<\/p>\n

Chevron sells its entire output from the Bangladesh fields \u2014 16 million tonnes a year of oil equivalent \u2014 to state oil company Petrobangla under a production-sharing contract.<\/p>\n

The Bangladesh government has the right of first refusal in any asset sale.<\/p>\n

Bangladesh\u2019s junior minister for power and energy, Nasrul Hamid, said that energy consultant Wood Mackenzie is still evaluating whether it would be profitable for the country to make a bid.<\/p>\n

\u201cWe can\u2019t take any decision hastily until we get the consultancy report,\u201d Hamid told Reuters. \u201cWe believe that Chevron would honor our request.\u201d<\/p>\n

The Chevron spokesman said that the Bangladesh government is \u201ccritical to the ongoing success of the business, including the transition to the new owner\u201d, and that it would maintain continuous communication with Dhaka as the process progresses.<\/p>\n

The gas fields \u2014 Bibiyana, Jalalabad and Moulvibazar \u2014 had average net daily output of 720 million cubic feet of gas and 3,000 barrels of condensate, or liquid hydrocarbon produced with gas.<\/p>\n

Chevron said in October 2015 that it planned to sell assets worth about $10 billion by 2017, including the Bangladesh gas fields and geothermal projects in Indonesia and the Philippines, amid a prolonged slump in energy prices.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

ZhenHua Oil had signed a preliminary deal with Chevron to buy the Bangladesh natural gas fields in February Chevron Corp is selling its three Bangladesh gas fields, worth an estimated $2 billion, to a Chinese consortium as the U.S. oil and gas group looks to shed non-core assets this year. The deal, if completed, would […]<\/p>\n","protected":false},"author":7,"featured_media":32686,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n\n\t\n