• 4 minutes U.S. Shale Output may Start Dropping Next Year
  • 8 minutes Read: OPEC WILL KILL US SHALE
  • 12 minutes Tidal Power Closer to Commercialisation
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 4 hours Why U.S. Growers Are Betting The Farm On Soybeans Amid China Trade War
  • 9 hours Trump to Make Allies Pay More to Host US Bases
  • 53 mins US-backed coup in Venezuela not so smooth
  • 10 hours BATTLE ROYAL: Law of "Supply and Demand". vs. OPEC/Saudi Oil Cartel
  • 20 hours Solar to Become World's Largest Power Source by 2050
  • 1 day Sounds Familiar: Netanyahu Tells Arab Citizens They’re Not Real Israelis
  • 11 hours Biomass, Ethanol No Longer Green
  • 1 day THE DEATH OF FOSSIL FUEL MARKETS
  • 1 day this is why Climate Friendly Agendas Tread Water
  • 1 day Boeing Faces Safety Questions After Second 737 Crash In Five Months
  • 1 day Exxon Aims For $15-a-Barrel Costs In Giant Permian Operation
  • 9 hours Trump Tariffs On China Working
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Zhenhua Oil In Early Accord To Buy Chevron’s $2B Gas Assets In Bangladesh

Chevron Oil

Chinese state-held company Zhenhua Oil has signed a preliminary agreement to buy Chevron’s natural gas fields in Bangladesh estimated to be worth around US$2 billion, Reuters reported on Wednesday, quoting two Chinese oil industry executives.

Zhenhua Oil, a small oil and gas exporter, is a unit of China’s defense industry conglomerate Norinco.

According to the Reuters sources, Zhenhua Oil signed the preliminary deal with the U.S. major in January, and is now trying to finalize the deal by June this year. Zhenhua Oil is said to be partnering with state-backed investment vehicle China Reform Holdings Corp, with Zhenhua to hold 60 percent of Chevron’s Bangladesh assets and China Reform, 40 percent.

Possibly because Zhenhua is a state-owned company and has the backing of China Reform, that’s why it was picked by Chevron,” one of the oil executives told Reuters.

Chevron, via its subsidiaries in Bangladesh, produces natural gas and condensate from three fields in the northeast of the country. Last summer Chevron was said to be selling US$5 billion worth of assets in Asia as part of a plan to raise US$10 billion total through global asset sales. At that time, the Bangladesh assets were not up for sale.

However, in October a Chevron spokesperson told UPI that although the U.S. company had not made a decision to sell the Bangladesh interests, it would proceed with a possible sale only “if we can realize attractive value for Chevron”.

Related: Unsatisfied With Oil Prices, Iraq Calls For New OPEC Meeting

The Zhenhua Oil-Chevron preliminary deal could, however, be blocked by Bangladesh, which holds the right of first refusal on the assets, Reuters says.

Bangladesh is hiring an international company to assess the reserves of Chevron’s gas fields and will approach the U.S. company with an offer after the asset appraisal is complete, Bangladesh’s state minister for power, energy and mineral resources, Nasrul Hamid, told Reuters at the end of January.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com: 



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News