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14 February, 2018 12:37:19 AM / LAST MODIFIED: 14 February, 2018 08:47:10 AM

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Petrobangla approves $115m for 2018

CHEVRON OPERATIONS IN BANGLADESH
SHAHED SIDDIQUE
Petrobangla approves $115m for 2018

Petrobangla, Bangladesh’s oil and gas corporation, has approved $115.17 million as operating expenses for US company Chevron Bangladesh to continue it gas production in 2018. The company meets more than 57 per cent of the country’s gas demand.

Sources said that out of $115.17 million, Chevron’s 570 regular employees (foreign and locals) will get $47.78 million. That means the average benefit to regular employee’s will be about Tk 69,00,000 annually.

Sources at Chevron Bangladesh told The Independent that they had around 535 local and 35 foreign employees. The foreign employees get three to four times more benefits than the locals. Chevron’s spokesperson declined to reply to a query regarding the expenses. The spokesperson had requested that an email be sent to his office, but there was no reply even after 25 days.

The US operator will spend $36.39 million as service and contract service fee for 1,400 contractual employees. “You will find that out of a total of $115.17 million operating expenditure, Chevron will spend $84.174 million for their employees. This time Chevron did not submit any smart budget for capital items that could prolong the gas production and enable them search more trapped reserves inside the prospect,”

For this year’s activities, Chevron submitted a $152.44 million budget and the Technical Finance Committee (TFC) approved $148.15 million, which included Capital Items, Operating Cost and Administrative Overheads. This year, the capital expenditure approved was only $14.491 million. The sum was $200 million few years ago.

“The capital expenditure indicates that Chevron is still not decided whether it will stay here for a long time. Because without capital expenditure the operation cannot be long term, as without new equipment the fields cannot be sustainable,” said an Petrobangla official.

Last year, the US giant announced that it would sell its Bangladesh share to a Chinese consortium. Later, it withdrew the decision when the Bangladesh government refused to accept any Chinese company in the place of Chevron. As per Chevron’s submission, the company will spend $11.304 million for a gas plant. Another $3.187 million will be spent on general property. This year, so far, they have not spent any money for seismic studies, land development and well developments.

“Generally, we approve Chevron’s budget after verification by the TFC,” said Md. Towhid Hasanat Khan, director (finance), Petrobangla.

But he declined to give any details about the budget. In the operating budget, Chevron Bangladesh’s 570 regular employees will get two types of benefits. First, they will get their basic and, for this, they will get $27.794 million. In addition, they will get all kinds of benefits from the government and Chevron as regular employees. This will entitle them to $19.986 million during 2018.

The operating budget includes material equipment supplies worth $8.806 million, transportation to the tune of $4.662 million, insurance of $4.211 million, general expenses amounting to $3.573 million and Bank charge of $0.5 million.

The operator also got $3.24 million as admin overhead cost.

After getting the approval, the US giant announced that that this year it will produce 1,488 MMSCF gas per day from their Bibiyana, Maulavibazar and Jalalabad three gas fields.

The operating cost would be 21 cent per unit. As per the PSC (Production Sharing Contract), both parties—the government and Chevron—will share the operating and other annual budgets as per their share holding of the gas fields, and the money will be  paid to the operator as cost recovery.

Bangladesh holds a 75 per cent share in the gas fields. Among the fields, Bibiyana is the largest in the country.

Petrobangla informs that the country produces 2,687 MMCF gas per day, of which Chevron alone produces 1545 MMCF gas per day. Out of 1,545MMCF Bibiyana produces 1,250 MMCF.

SR

 

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Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

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