The U.S. oil company Chevron (CVX.N) will not sell three subsidiaries and leave Bangladesh as planned, Chevron said on Sunday.
DHAKA (Reuters) – The U.S. 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&rsquo-s Himalaya Energy Co. the wholly owned subsidiaries that operate three gas fields, which together account for 58 percent of Bangladesh&rsquo-s gas production.
Chevron &ldquo-will not be proceeding with an agreement to sell the shares of its wholly owned indirect subsidiaries,&rdquo- Cameron Van Ast, Chevron&rsquo-s external affairs advisor for Asia and the Pacific, said in a statement sent to Reuters on Sunday.
&ldquo-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,&rdquo- 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&rsquo-s largest gas field, said Nasrul Hamid, Bangladesh&rsquo-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.
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