The US oil company Chevron (CVX.N) will not sell three subsidiaries and leave Bangladesh as planned, Chevron said on Sunday.Chevron had said in April it would sell to China’s Himalaya Energy Co. the wholly owned subsidiaries that operate three gas fields, which together account for 58 percent of Bangladesh’s gas production.
Chevron “will not be proceeding with an agreement to sell the shares of its wholly owned indirect subsidiaries,” Cameron Van Ast, Chevron’s external affairs advisor for Asia and the Pacific, said in a statement sent to Reuters on Sunday.
“Chevron has decided to retain these assets and will continue to work with our partners Petrobangla and the government of Bangladesh to provide reliable and affordable energy to the nation,” the statement said.
Chevron did not give a reason for reversing its decision.
Rather than leaving, Chevron will invest $400 million at Bibiyana, the country’s largest gas field, said Nasrul Hamid, Bangladesh’s junior minister for power, energy and mineral resources. Bibiyana produces 1,250 million cubic feet of gas a day.
Chevron formally conveyed its intention to stay in Bangladesh in a letter last week, Hamid said.
Rising oil and natural gas prices had boosted third-quarter profits at Exxon Mobil Corp and Chevron Corp by about 50 percent, underscoring how reliant they remain on commodity markets for their financial futures than better technology or cost cuts.
Exxon and Chevron have pointed to aggressive plans for boosting low-cost US shale production. But in recent quarters total output at both has atrophied and shale is unlikely to deliver a marked lift until the next decade, based on corporate projections.