March 1, 2007 is a big day for Bangladesh’s energy sector. On this day comes into operation Bibiyana, the largest gas field being operated by an international oil company in the country. When it will go into production of its full capacity, it will be one of the largest gas fields in Bangladesh. The Bibiyana with reserves of 2.4 trillion cubic feet (TCF) of gas will be a major source of energy for energy hungry Bangladesh. It is also a sign of IOCs’ commitment towards development of Bangladesh, their commitment to work through partnership at local and national level and safety.

The world-class Bibiyana gas field is located in Block 12, in the northeastern district of Habiganj in Sylhet division. The field was discovered by Chevron, formerly Unocal in Bangladesh, in 1998. Bibiyana is one of the most significant natural gas field discoveries in Bangladesh in terms of both quality and quantity.

In 2000, the company submitted the Bibiyana field appraisal report to Petrobangla, the state-run oil, gas and mineral corporation, declaring it a significant discovery. Later in November 2004, the company signed a GPSA (gas purchase and sales agreement) with Petrobangla to develop and produce natural gas from the Bibiyana field.

Under the agreement, Chevron's minimum production will be 200 million cubic feet per day (MMCFD) gas beginning in the first quarter of 2007. Maximum production sales volume under the GPSA will increase to at least 600 MMCFD making it the largest gas producing field in the country. Total development cost for the project, including the drilling of up to 15 development wells, is estimated to be over US$ 230 million.

The project includes a gas plant and a natural gas pipeline to connect the Bibiyana field to the national natural gas transmission grid and a condensate pipeline. The Chevron has constructed two raised pads-- North Pad and South Pad. The plant which would process 200 MMCFD from early March has been constructed at its South Pad. The company has drilled seven wells. Drilling of five new wells has been completed at North Pad and five more will be drilled at South Pad by the first half of this year.

Besides, a total of 90-kilometer pipeline has been constructed to supply gas and condensate from Bibiyana field to the national grid at Muchai, Rashidpur. Also, refurbishing of local bridges and culverts and construction of a 4km raised road including a new bridge linking the two pads have been completed.

The Bibiyana development would expand Chevron Bangladesh's current production in the country. With the start of production from Bibiyana, Chevron alone will be able to cater to a third of the total gas demand in Bangladesh. It indeed would be a remarkable achievement for any single company, said energy experts.

Local Partnership
Chevron officials said it maximized the Bangladeshi content in the construction of nearly 90-km of pipelines required for Bibiyana project. The major Bangladeshi pipeline construction companies have worked to complete the construction work.

The entire in-country construction work of the Bibiyana project has been carried out by Bangladeshi contractors with more than ten million man hours of Bangladeshi labor. “All project-related civil works as well as construction of pipeline and gas plant have been performed by Bangladeshi contractors,” said an executive of the Chevron Bangladesh.

He said: Since the beginning we have been keen to contribute to the business scenario of the locality by enlisting local vendors who were given the opportunity to do business with Chevron and its contractors. The services rendered by the local vendors have always been crucial to the development of the gas field. Services include labor, house rentals, transportation rentals, as well as supply of materials and equipment. Not only have we used the services but we have also passed on some learning to the service providers on how to bid and to manage workforces in a safe and responsible way.

Now all are set for beginning production and starting supply from Bibiyana gas field to the national gas transmission grid.

Andrew L Fawthrop, President and Managing Director of Chevron Bangladesh, said the last two years saw a tremendous amount of activities on the part of the workforce involved in the development of the Bibiyana gas field.

“Those who have been and still are involved in this project -- the workers, the officials, the contractors and especially the people of Habiganj and Moulvibazar -- deserve credit for what we have achieved so far,” he said.

The Chevron Bangladesh chief said: We value everyone’s contribution; it is the hard work of each committed individual that will continue to help us reach the goals we have set for ourselves.

“We view the project as a cornerstone of the relationship between Chevron and the local people, which, we envisage, will continue for the next 25 years. I am hopeful that within this long period there will be opportunities for both the company and the people of Bibiyana to engage in mutually beneficial projects,” he said.

Safety First
Chevron officials said that safety has always been Chevron’s top priority. Throughout development of Bibiyana construction, extreme care has been taken to ensure safety of the workforce. All goals have been achieved under high-level of safety measures. Around 5,500 personnel received safety training while working in the project. Chevron has spent more than five million man-hours without any major incident.

“These achievements reflect the strong commitment to safety demonstrated by our employees and contractors, and the leadership in maintaining and sustaining safe operation and environment over time,” said Andrew L. Fawthrop.

At Chevron Bangladesh, he said, they have always shown a strong commitment to ensuring safety at every step of our operation. "When it comes to safety of the workforce and the community, our commitment can never be overemphasized."

“We have made tremendous efforts to ensure safety of everyone involved in every aspect of our work -- at the office, in the gas fields, on roads as well as in the communities where we work. We are truly proud of the achievement we have made in this regard.”

He said: We implemented a wide range of high safety measures while drilling the wells of the Bibiyana gas field. A group of internationally trained and highly skilled professionals have been engaged in drilling. Work has progressed while maintaining high safety standards. Most modern equipment and pioneering technology have been used in drilling the wells. Chevron made sure that adequate training was given to all involved in the development phase of the Bibiyana gas field.

“We have always been keen to make the communities that live near our plant remain fully informed of our course of action. Prior to drilling the wells, local people were briefed on the issues of drilling and safety measures that were to govern every phase of our operation. Earlier, a detailed inventory of immovable properties of all households in the surrounding villages was prepared to raise confidence of the community,” said the Chevron Bangladesh chief.

As safety is one of our major concerns, he said, our commitment to work with the local communities too can be seen as one of our core values.

“Since the beginning of the Bibiyana project we have shown an eagerness to recruit as many employees as we can from the local workforce. We made sure that they were given the opportunity to contribute to the project that is set to change the energy scenario of the country. Despite the fact that the development work of this gas field is highly technical, we always made an effort to maximize the job opportunity of the local people,” said Andrew Fawthrop.

Development of Local Community
Chevron officials said that its policy to work with the communities where it operates has always led to various community development projects. “Chevron values the partnership with the people, and is determined to continue its support to help the communities in their drive to improve their lives,” said a top Chevron Bangladesh executive.

Alongside development work of the Bibiyana project, the official said, the company has been engaged in the development of the local community in the area. Chevron, in collaboration with NGOs, has been implementing community projects in order to provide various services to the villagers living near the Bibiyana project.

Following are some of the programs that the company initiated in the past and will initiate in future to fulfill its pledge to provide impetus to the overall socio-economic development of its stakeholders:

Smiling Sun Clinic
The Smiling Sun Clinic has been established with a view to ensuring the healthcare facilities of the people of the local community. The clinic is now providing health care services to an average of 4,000 villagers each month. An ambulance was also provided to the clinic to facilitate the services. The clinic provided services to 8000 people in December 2006.

Livelihood Program
The project has been implemented through a local NGO with a view to creating income-generating activities. A total of 500 vulnerable families have been brought under the project. The community through the project is receiving training on different livelihood activities including broiler, beef fattening, vegetable cultivation etc.

Sanitation Program
In line with the government plan “Sanitation for All by 2010,” Chevron distributed 1,300 sets of sanitary latrines among the underprivileged people. By March 2007, an additional 1,400 families would receive hygienic latrines. More families will receive the facility by the end of this year.

School Support Program
Chevron runs yearly scholarship program to support the underprivileged, meritorious students of Bibiyana with a view to encouraging them to pursue higher education. A total of 100 students were awarded scholarship last year and this year the number has increased to 230. The Chevron is also supporting four high schools in the area with additional teachers and supplies. Besides, Chevron constructed a school building at Dighalbak, distributed uniforms among 3246 students at 13 schools in the area. It is also working to provide training/ orientation to the teachers of the local educational institutions with a view to improving the quality of English education.

Andrew L. Fawthrop said: Chevron Bangladesh will always consider itself a partner of the local people of Bibiyana in their effort to attain socioeconomic advancement. It is with this view in mind that we would like to strengthen this partnership.

Chevron in Bangladesh
Chevron Bangladesh is a subsidiary of Chevron Corporation which is the fifth largest integrated energy company in the world. Headquartered in San Ramon, California, the company is conducting business in approximately 180 countries. It is engaged in every aspect of the oil and natural gas industry, including exploration and production; refining, marketing and transportation; chemicals manufacturing and sales; and power generation.

The Chevron Bangladesh has been active in oil and gas exploration and production in Bangladesh for a number of years, predominantly in Blocks 12, 13 and 14 in the greater Sylhet district. Chevron is one of the largest foreign investors in the energy sector of Bangladesh, having invested about US$ 600 million so far. By 2007, an additional US$150 million will be invested in Bangladesh.

During 1998-1999, the company and its subsidiaries drilled four new exploratory wells resulting in the discovery of two new gas fields, Bibiyana and Moulvibazar. A second successful exploration well in early 1999 confirmed that Bibiyana is a world-class gas field.

Its officials said Chevron supports Bangladesh's goal to reduce the nation's reliance on imported energy by actively investing in projects that ensure adequate supply of gas to Petrobangla.

Chevron proved its worth in Bangladesh as elsewhere in the world. Energy experts are optimistic that the partnership with the Chevron will strengthen the future energy security in Bangladesh. As it has been working in several other fields, they hope that Bangladesh in future will witness more discoveries by Chevron like Bibiyana.