US energy giant Chevron has submitted a proposal to Bangladesh’s state-run Petrobangla to develop onshore hydrocarbon block-11 and extend its exploration rights over block-12.

The proposed blocks are located in the gas-rich Surma Basin in northeastern Bangladesh, which supplies a significant portion of the country’s natural gas.

While Chevron has not disclosed the investment details or the price it seeks for selling gas to Petrobangla, sources indicate that the company is proposing a pricing model linked to Brent Crude.

It is reportedly seeking 10 percent of Brent’s price per cubic meter of gas, which, at the current rate of $70.50 per barrel, would translate to $7.05 per cubic meter—135 percent higher than the existing gas price from its operational fields.

The proposal comes after Petrobangla’s recent offshore bidding round, which failed to attract participants despite offering similar pricing terms.

Chevron previously invested $500 million in expanding the Bibiyana gas field between 2012 and 2015, drilling 12 wells and installing processing facilities that increased production by 350 million cubic feet per day (mmcfd).

If granted exploration rights, the company could leverage Bibiyana’s infrastructure to expedite new gas supply, potentially increasing production to 1,350 mmcfd.

Petrobangla has yet to decide on the bid, having previously rejected a similar offer from Chevron for the Rashidpur gas field. Instead, the state corporation opted to develop the field through its subsidiary, Bangladesh Petroleum Exploration and Production Company Ltd (BAPEX).

Chevron’s proposal follows its independent exploration studies across 11 onshore blocks in recent years, highlighting new potential reserves. However, some of these blocks remain undeveloped, while others are controlled by Bangladesh Gas Fields Company Ltd (BGFCL) or Sylhet Gas Fields Ltd (SGFL).