In this regard, it will divest its wholly-owned indirect subsidiaries operating in Bangladesh to Himalaya Energy.
According to a report in Reuters, Himalaya Energy is owned by a Chinese consortium that features state-owned China ZhenHua Oil and CNIC, an investment firm.
Chevron Bangladesh, the Bangladesh subsidiary of Chevron, has operations in Block 12 known as the Bibiyana field and Blocks 13 and 14 known as the Jalalabad and Moulavi Bazar fields respectively.
The fields have an average net output of 720 million cubic feet of gas per day along with 3,000 barrels a day production of condensate, or liquid hydrocarbon.
Under a production-sharing contract, Chevron sells its entire annual output from the three fields of about 16 million tonnes of oil equivalent to Bangladesh state-owned oil firm, Petrobangla.
The transaction will be completed after meeting certain closing conditions.
In October 2015, Chevron disclosed its strategy to divest assets totaling $10bn by 2017 following a long decline in energy prices.
As part of it, Chevron had completed sale of its geothermal assets in Indonesia and Philippines to Star Energy Consortium recently.
The most important Indonesian geothermal assets divested were the Salak and Darajat geothermal fields with a combined capacity of 413MW while producing 275MW of steam. In Philippines, the main asset sold by Chevron is the Tiwi-Makban geothermal field which has a current steam production of around 326 MW.
Based in San Ramon in California, Chevron through its subsidiaries covers most segments of the energy industry in various countries.
Image: Chevron Corporation headquarters in San Ramon, California. Photo: courtesy of Coolcaesar/ commons.wikimedia.org.
