• 5 minutes Global Economy-Bad Days Are coming
  • 8 minutes IT IS FINISHED. OPEC Victorious
  • 14 minutes Venezuela continues to sink in misery
  • 17 minutes Could Tesla Buy GM?
  • 1 hour Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 1 hour OPEC Cuts Deep to Save Cartel
  • 2 hours What will the future hold for nations dependent on high oil prices.
  • 3 hours Price Decline in Chinese Solar Panels
  • 4 hours And the War on LNG is Now On
  • 7 hours Alberta Cuts Push Prices Too High
  • 2 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 1 day Congrats: 4 journalists and a newspaper are Time’s Person of the Year
  • 2 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 2 days Permian Suicide
  • 2 days Asian stocks down
  • 4 hours Rigs Down

Breaking News:

Total To Boost Exploration In Mauritania

Is This The Answer To Global Warming?

Is This The Answer To Global Warming?

As the world attempts to…

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