Chevron and Cairn sign Bangladesh gas exploration deal
July 10th, 2008 | by mantrionline |Chevron Corp (CVX.N: Quote, Profile, Research) and Cairn Energy (CNE.L: Quote, Profile, Research) have signed a deal with Bangladesh to undertake further gas exploration and seismic survey works in country’s south-west, a senior Bangladesh oil official said on Tuesday.
“We have signed the production sharing contract (PSC) with the U.S energy firm Chevron and British firm Cairn Energy for an additional seismic and drilling programmes,” said Muhammad Muqtadir Ali, director of the Bangladesh oil, gas and mineral corporation or Petrobangla.
Work will consist of 450 kilometres of 2D seismic data surveying on Block-7, beginning at the end of 2008, followed by the drilling of an exploration well, he said.
In 2006, Chevron conducted a seismic survey in the region and found three potential hydro-carbon zones.
“The programme aims to identify new reserves to help increase the energy supply to Khulna (industrial city) and other neighbouring parts and also to justify the investment in the energy-starved South West gas hub,” said Steve Wilson, President of Chevron in Bangladesh.
Chevron is currently producing more than a third of Bangladesh’s total gas from its three fields — Jalalabad, Moulavibazar and Bibiyana.
Chevron and Cairn Energy each own a 45 percent stake in Block-7, with the remaining 10 percent owned by state-run Bangladesh Petroleum Exploration and Production Company.
