Chevron Bangladesh is set to restart its Jalalabad Compression Project following a year-long suspension, after state-run Petrobangla cleared outstanding dues.

Petrobangla Chairman Md Rezanur Rahman confirmed that Chevron’s President in Bangladesh, Eric M Walker, conveyed the decision in a recent meeting and formalised it in a letter dated 22 June. The US company is expected to invest $80–90 million to complete the project.

Chevron halted the initiative in April 2024 over delayed payments, which had accumulated to $280 million. The project aims to increase recovery from the Jalalabad gas field and could unlock an estimated 352 billion cubic feet of gas.

Walker described Petrobangla’s clearance of arrears in April as a “positive outcome,” but added that continued progress hinges on timely monthly payments and the settlement of $25–26 million in late payment interest by 30 September 2025. Petrobangla plans to clear the interest by July.

Petrobangla had requested Chevron to resume work on the project after committing to a payment schedule.

Chevron, the country’s largest gas producer, currently supplies about 1.08 billion cubic feet per day from its Bibiyana, Jalalabad and Moulavi Bazar fields. Its BY-28 well at Bibiyana alone adds 40,000 Mcf/d.

Meanwhile, Chevron has a separate $500 million proposal pending, seeking to explore Block-11 and expand access to Block-12 in the Surma Basin. The company aims to leverage its existing facilities for the quick integration of any future discoveries.