• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 14 hours What China is Learning from Russia's War in Ukraine and its Consequences
  • 6 days How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 1 day Failure To Implement Russian Oil Ban Could Send Oil Crashing To $65
  • 3 days Natural Gas is the Cleanest and most Likely Source of Energy to Fuel the World.
Is The Global Debt Bubble About To Burst?

Is The Global Debt Bubble About To Burst?

The global economy is in…

German Industry Boss: Cutting Off Russian Gas Would Be “Catastrophic”

German Industry Boss: Cutting Off Russian Gas Would Be “Catastrophic”

Siegfried Russwurm, president of Germany’s…

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

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

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News