Chevron Inaugurates Bibiyana Natural Gas Field, Bangladeshi Project To Be Leading Supplier Of Gas

Chevron Corporation (NYSE: CVX - News) today announced the inauguration of the Bibiyana natural gas field, which is located onshore in Block 12 in the northeast of Bangladesh in Habiganj District.

Bibiyana, one of the largest gas fields in Bangladesh, is expected to initially produce 200 million cubic feet of natural gas per day (mmcfd). The plant’s full capacity of 600 mmcfd is scheduled to be available by late 2007, with the field reaching maximum total production of 500 mmcfd by 2010. Once full production is realized, Bibiyana is set to become the largest producing gas field in the country.

Speaking during the inauguration ceremony at the Bibiyana field, John Watson, president, Chevron International Exploration & Production, said, "Achieving first gas at Bibiyana is a significant milestone for Chevron and demonstrates the company’s ability to select and execute major capital projects.

“Bibiyana is a world-class gas resource that is expected to supply reliable, clean energy for the next 20 to 30 years,” he said.

The project includes 12 development wells, a gas plant, a natural gas pipeline and a condensate pipe line. The company has signed a gas purchase and sales agreement with Petrobangla, the state owned oil and gas company.

Managing Director and President of Chevron Bangladesh Andrew Fawthrop said, "The Bibiyana project was a huge undertaking that demonstrates our ability to bring online technically complex projects in challenging circumstances. We extend our gratitude to our employees, the government, Petrobangla, local contractors and the community for working with us to reach this landmark achievement.

“Chevron is proud of our record at Bibiyana, where Bangladeshi contractors have performed more than 10 million man hours of project-related civil works, pipeline and gas plant construction without any major incident. At peak construction, the project employed more than 2,000 Bangladeshi workers through Bangladeshi contractors,” said Fawthrop.

Chevron holds interests in three production sharing contracts in Bangladesh, encompassing more than 10,000 square kilometres (2.47 million acres). Chevron Bangladesh has a 98 percent working interest in Bibiyana, Jalalabad and Moulavi Bazar fields, with the latter two fields having a combined average total production of 330 mmcfd. Chevron also has a 43 percent interest in Block 7 in southern Bangladesh where the company conducted seismic survey in 2006.

The Bibiyana inauguration event was attended by Dr. Fakhruddin Ahmed, the Honorable Chief Adviser of the Caretaker Government; Tapan Chowdhury, Power and Energy Adviser; Patricia A. Butenis, U.S. Ambassador to Bangladesh; A.M.M. Nasir Uddin, Secretary, Energy & Mineral Resources Division; John Watson, President, Chevron International Exploration & Production; and Andrew Fawthrop, Managing Director and President of Chevron Bangladesh.