Chevron’s new President of Base Assets and Emerging Countries, Javier La Rosa, has proposed the development of two prospective onshore gas blocks—Blocks 11 and 12—in Bangladesh’s northeastern region under special negotiations, in an effort to boost domestic natural gas production.
Power and Energy Adviser Dr. Fouzul Kabir Khan confirmed the proposal following a meeting with La Rosa during his visit to Dhaka. “They [Chevron] want to work on Blocks 11 and 12, and we are examining their proposal,” Dr. Kabir told Just Energy News.
The blocks are located in the gas-rich Surma Basin, covering areas such as Sunetra in Netrokona, parts of the Sylhet gas field, and the Moulvibazar gas field.
Chevron Bangladesh had earlier submitted an unsolicited proposal to state-run Petrobangla for the development of these blocks.
The company suggested linking the gas price to the international Brent Crude benchmark, proposing a price equivalent to 10% of the Brent rate—a variable pricing model.
Legal and Regulatory Hurdles
One major challenge in advancing the proposal is the recent suspension of the Speedy Supply of Power and Energy (Special Provisions) Act, which previously allowed energy deals to be negotiated directly.
Additionally, the existing Model Production Sharing Contract (PSC) framework does not permit unsolicited expansion into new blocks, posing another legal barrier.
“The government will need to examine legal avenues to implement this proposal,” Dr. Kabir noted, adding that a technical meeting between Petrobangla, BAPEX, and Chevron was held on June 7, 2025, to evaluate the matter further.
Tariff Proposal and Cost Comparison
Currently, under the model PSC, Chevron is paid $1 per MMBtu of gas, while the production cost stands at $2.75 per MMBtu. If the new proposal is accepted, the gas price could rise to between $3.50 and $4.00 per MMBtu, assuming a 35–40% production-sharing ratio.
“Despite increase the cost, this would still be significantly lower than the cost of imported LNG,” said a Chevron Bangladesh official, speaking on condition of anonymity.
Chevron previously invested around $500 million between 2012 and 2015 in expanding the Bibiyana gas plant, including new development wells and an enhanced liquids recovery unit. The company also installed the Jalalabad Gas Compressor during that period.
Notably, a similar proposal by Chevron to develop the onshore Rashidpur gas field—owned by the state-run Sylhet Gas Fields Ltd (SGFL)—was rejected by Petrobangla in the past.
Strengthening Partnerships
During his visit, La Rosa met with several key government officials, including Energy and Mineral Resources Division (EMRD) Secretary Mohammad Saiful Islam, Petrobangla Chairman M. Rezanur Rahman, BIDA Executive Chairman Ashik Chowdhury, and Special Envoy to the Chief Advisor for International Affairs, Lutfey Siddiqi.
“I am pleased to be in Bangladesh and to engage with our valued government stakeholders on day one of my new role,” La Rosa said.
He reaffirmed Chevron’s long-standing commitment to Bangladesh, noting: “We have a strong partnership with the government, Petrobangla, and the people of Bangladesh—one that has supported the country’s energy security and economic growth for over 30 years.”
“We are encouraged by the interim government’s proactive approach to resolving current challenges, which sends a positive signal to both existing and prospective investors,” he added. Chevron has invested more than $4.2 billion in Bangladesh’s energy infrastructure over the past three decades, including over $634 million through local suppliers—playing a key role in supporting the country’s foreign exchange reserves.