US energy giant Chevron has submitted a formal proposal to access and develop onshore gas Blocks 11 and 12 in northeastern Bangladesh – areas currently being explored by the state-owned Bangladesh Petroleum Exploration and Production Company Limited (Bapex).
The proposal, delivered through a PowerPoint presentation on July 7, seeks around 6,000 square kilometres across the two blocks under “special consideration.”
Bapex has already undertaken a programme to drill four exploratory and development wells – Sunetra-2, Sunetra East-1, Madan-1, and Madan-2 – under Block 11 in the Surma Basin. Several senior officials from the Energy and Mineral Resources Division said this to Just Energy News on condition of anonymity. According to them, the Division politely informed Chevron of its ongoing plans.
Officials also confirmed that Sylhet Gas Fields Ltd (SGFL), another state-owned company, has begun its own exploration activities in Block 12.
Chevron’s proposal has raised concerns over potential overlaps with existing exploration initiatives by Bapex and SGFL. Javier La Rosa, Chevron’s newly appointed President of Base Assets and Emerging Countries, reiterated the request during an official visit to Dhaka, where he met Power and Energy Adviser Dr Fouzul Kabir Khan.
“They [Chevron] want to work on Blocks 11 and 12, and we are examining their proposal,” Dr Kabir told Just Energy News.
Chevron had earlier submitted an unsolicited proposal to Petrobangla, suggesting a pricing formula tied to international Brent crude oil—equivalent to 10% of the benchmark rate.
Legal and Regulatory Hurdles
The proposal faces significant legal and regulatory challenges. The recent suspension of the Speedy Supply of Power and Energy (Special Provisions) Act, previously used to fast-track direct negotiations, complicates any agreement. Additionally, the current Model Production Sharing Contract (PSC) does not allow unsolicited bids for new blocks.
“The government will need to explore legal avenues to implement this proposal,” Dr Kabir added.
Notably, a similar unsolicited proposal by Chevron to develop the SGFL-owned onshore Rashidpur gas field was previously rejected by Petrobangla.
Chevron has been a key player in Bangladesh’s energy sector for decades, with over $4.2 billion invested in infrastructure. Of that, more than $634 million has been spent through local suppliers, significantly contributing to the country’s foreign exchange reserves.