Energy & Power

Report

Production from Bibiyana Starts
EP Report

Chief Advisor Dr. Fakhruddin Ahmed has inaugurated the Bibiyana gas field. It is located in the country's northern district of Habiganj. Bibiyana will produce 200 million cubic feet of natural gas per day, which will be supplied to the national grid.

While inaugurating the production of the field, the Chief Advisor said opening Bibiyana gas field is an "important landmark in the implementation of goal-oriented action plans for development of natural gas in the country."

He also said the government attached top priority to optimal production and utilization of natural gas for the country's long-term energy security.

The field was discovered by US company Chevron, formerly Unocal Bangladesh, in 1998. Bibiyana is one of the most significant natural gas field discoveries in Bangladesh in terms of both quality and quantity. Bibiyana, with a reserve of 2.4 trillion cubic feet of gas, will be a major source of energy for Bangladesh. It is the largest gas field being operated by an international oil company (IOC) in Bangladesh.

Initially Bibiyana has been producing 200 MMCFD gas. The plant's full capacity of 600 MMCFD is scheduled to be available by late 2007, with the field reaching maximum total production of 500 MMCFD by 2010. Once full production is realized, Bibiyana is set to become the largest producing gas field in the country.

Energy Advisor Tapan Chowdhury, Secretary AMM Nasir Uddin, US Ambassador Patricia A. Butenis, Petrobangla Chairman Dr. Sheikh Abdur Rashid, Chevron President John Watson and Managing Director Andrew L Fawthrop also spoke at the function on the Bibiyana gas field premises.

Speaking during the inauguration ceremony, John Watson, President, the Chevron International Exploration & Production, said achieving the first gas production at Bibiyana is a significant milestone for Chevron and demonstrates the company's ability to select and execute major capital projects. "Bibiyana is a world-class gas resource that is expected to supply reliable, clean energy for the next 20 to 30 years."

The project includes 12 development wells, a gas plant, a natural gas pipeline and a condensate pipeline. The company has signed a gas purchase and sales agreement with Petrobangla, the state owned oil and gas company.

Managing Director and President of Chevron Bangladesh Andrew Fawthrop said, "Chevron is proud of our record at Bibiyana, where Bangladeshi contractors have performed more than 10 million man hours of project-related civil works, pipeline and gas plant construction without any major incident. At peak construction, the project employed more than 2,000 Bangladeshi workers through Bangladeshi contractors."

Chevron holds interests in three production sharing contracts in Bangladesh, encompassing more than 10,000 square kilometers. Chevron Bangladesh has a 98 percent working interest in the Bibiyana, Jalalabad and Moulavi Bazar fields. Combined, the latter fields average a total production of 330 MMCFD, according to a press release.

In early 2006, Chevron supplied 20 percent of Bangladesh's natural gas market and this is expected to increase to over 30 percent when peak production is realized at Bibiyana, the statement adds.

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.

Landmark Success of Mobil Jamuna

Mobil Jamuna Lubricants Ltd. Has added a landmark success to the country’s energy sector by celebrating the nation’s first ever export of lubricants.

The company hosted a reception at a local hotel to celebrate this achievement. Tapan Chowdhury, Adviser to the Ministry of Power, Energy, and Mineral Resources was present as chief guest while Mr. AMM Nasir Uddin, Secretary, Energy & Mineral Resources Division attended the function as special guest. Azam J. Chowdhury, the Managing Director of Mobil Jamuna Lubricants Limited, was present at the reception.

Tapan Chowdhury congratulated the company’s management on their achievement. As a marketing professional, he expressed satisfaction at the company’s plan to not only export lubricants to Nepal, but also to develop the market there.

AMM Nasir Uddin, also the Chairman of Mobil Jamuna Lubricants Ltd., lauded the stringent quality control measures practiced by the company and their untiring efforts to eradicate the problem of adulteration from the Lubricant Industry.

He noted that Bangladesh had always been an importer of petroleum products. But he was proud to announce that from now on Bangladesh becomes an exporter. He observed that Mobil Jamuna Lubricants joint venture company is an exemplary case study of successful public and private sector cooperation.

Azam J. Chowdhury, Managing Director of Mobil Jamuna Lubricants Limited, noted the importance of standards and specifications for the Petroleum Industry.

He informed that the company’s laboratory has received ExxonMobil’s certificate of compliance and achieved record setting precision in blending lubricants according to global standards. Due to the company’s dedication to quality and professionalism, it has been given permission to export Mobil and Esso brand lubricants starting with the responsibility for supporting the Nepalese market.

Chowdhury also noted that a new project was at the feasibility stage for processing Naphtha in to premium grade motor gasoline. Naphtha is a by-product of Eastern Refinery which is currently sold at spot market prices and exported.

On the other hand, Bangladesh imports premium gasoline, incurring freight and other costs. The proposed project will provide maximum value addition for the Naphtha while achieving 100 percent import substitution as well as increasing security of supply.

Mobil’s Position in Bangladesh
Mobil Jamuna Lubricants Ltd. is the market leader in its market segment since long.

Mobil’s Plan for Nepal
Exxon Mobil Corporation gave Mobil Jamuna Lubricants Ltd. the permission to export Mobil products to Nepal through distributors. In mid March, 2007 Mobil Jamuna Lubricants made their first export to Nepal of a value of USD $49,505/-.

Mobil’s Future Plan
Mobil Jamuna Lubricants has started exporting to Nepal and will continue in doing so. Besides that the company will be marketing the products and providing all sorts of marketing support to the distributors for expanding business in Nepal.