The government has requested Chevron to continue gas production from its three onshore fields despite overdue payments amounting to $280.72 million due to fund constraints. Chevron initially demanded that all payment arrears be cleared by August 31, 2023. However, discussions between the finance minister, central bank governor, and Chevron officials have led to a temporary resolution, with Chevron continuing production.
Petrobangla, the state corporation, has increased its payments to Chevron slightly to address outstanding gas bills. The government’s inability to clear payments for over a year, from April 2022 to May 2023, had raised concerns about potential disruptions in the country’s gas supply.
Chevron, which produces 1,280 million cubic feet per day, accounting for approximately 60% of the total gas output from local fields, has the right to halt production if non-payment exceeds five months, as per the gas purchase and sales agreement. The government is working to arrange funds and make payments to Chevron to ensure uninterrupted gas supply. Chevron is also planning additional gas drilling in the region to meet the country’s growing fuel demand.
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