Chevron, following ExxonMobil’s lead, has expressed interest in exploring Bangladesh’s untapped deep offshore blocks with high hydrocarbon potential. Chevron Bangladesh submitted a proposal to the Energy and Mineral Resources Division (EMRD), though specific block preferences were not disclosed. The revised terms in the model production-sharing contract (PSC) may have attracted US firms like Chevron and ExxonMobil to the region. ExxonMobil plans to sign a production-sharing contract, conduct seismic surveys, and drill if results are promising, taking approximately eight years to bring gas into the national grid if viable reserves are found.
Chevron’s involvement could entail significant investments, potentially bolstering Bangladesh’s foreign currency reserves and addressing its growing energy needs. The country’s offshore bidding for hydrocarbon exploration is pending, as state-run Petrobangla awaits instructions from EMRD. The new PSC model, approved in 2023, ties offshore gas prices to international benchmarks, removes pricing caps, and offers more favorable profit-sharing terms. Bangladesh’s offshore areas are well-defined, and Chevron joins ExxonMobil in seeking to tap into this promising market.
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