PTTEP wins rights to gas concessions in Gulf of Thailand
Thailand state company PTT Exploration and Production (PTTEP) has won a bid to develop and produce gas from two concessions in the Gulf of Thailand.
The rights for Erawan and Bongkot concessions were secured in an auction conducted by the Thailand Energy Ministry. These concessions are set to expire in 2022 and 2023 respectively.
Currently, the Erawan gas block is operated by US oil and gas major Chevron’s Thai unit.
PTTEP operates Bongkot.
Under the auction, PTTEP has secured the Erawan (G1/61) concession in a joint bid with its partner, the UAE’s Mubadala Petroleum, defeating Chevron and Mitsui Oil Exploration.
The company will be the operator of the Erawan concession with a majority interest of 60%, while Mubadala will own the balance 40%.
Meanwhile, PTTEP won the Bongkot (G2/61) concession in a solo bid.
PTTEP CEO Phongsthorn Thavisin said: “Our proposed development and investment plans will enable us to produce natural gas at the required production levels of at least 700 million cubic feet per day (MMSCFD) and 800MSCFD from the Bongkot and Erawan fields respectively during the production sharing contract regime.
“For the Bongkot field in which PTTEP is the existing operator, we are able to immediately invest to deliver the committed production level, while we have workplan and investment plan for the Erawan field during the operatorship transfer.”
Mr Thavisin noted that the concessions would enhance the company’s production and reserves in the long-term.
The company will have production and development rights over the blocks for a period of 20 years. The contract includes an option for a further ten-year extension.
The production sharing contracts for the blocks are expected to be signed by the end of February next year.
Together, the Erawan and Bongkot fields have a combined production of 2.1 billion cubic feet per day of gas, Reuters reported citing government data.
The Thailand government will receive a majority share of the profits from the fields, including 68% of the production profits from Erawan and 70% from Bongkot.
Source: OGLinks