The New Nation - Internet Edition

UNB, Dhaka

US-based international oil company Chevron will conduct an additional two-dimensional

(2D) seismic survey and drilling an exploration well in the hydrocarbon block 7 located in Bangladesh's southwestern part.

To this effect, Chevron Bangladesh Block Seven Ltd. and its partner Cairn Energy in the Block 7 signed an addendum to the existing Production Sharing Contract (PSC) that was earlier signed with Petrobangla.

In Block 7, encompassing four districts-Barisal, Potuakhali, Jhalakathi and Pirojpur-Chevron has 45 percent of the stakes as the operator while Cairn Energy (Bangladesh) Ltd. owns 45 percent and the remaining 10 percent is owned by BAPEX.

According to a Chevron news release, the additional contract represents part of Chevron's ongoing gas-exploration effort in the southwestern part of Bangladesh, which is expected to start after the monsoon and cyclone season, in December 2008.

"A seismic program will delineate features of interest which were identified by a regional seismic program acquired in 2006. Work will consist of 450 km of 2D seismic data acquisition, and the program later includes the drilling of an exploration well in the block," it said.

Steve Wilson, President of Chevron Bangladesh, said the seismic program in Block 7 aims to identify new reserves to help increase the energy supply to the nation.

Chevron is committed to continuing to expand its efforts to ensure future energy security of the country.

"We look forward to working closely with our partners, with a view to developing the energy sector safely and in an environmentally responsible manner," he said.

He noted that the company's vision of success is finding sufficient resource in and around Block 7 to be able to justify the investment in the infrastructure necessary to develop a South-West Gas hub, supplying Khulna and other neighboring parts on the energy-starved southwest.

Chevron is currently producing over a third of the total gas output in the country from its three fields - Jalalabad, Moulvibazar and Bibiyana. All three fields have been maintaining high-safety standards and records of over 99.9 percent online efficiency.