PTT Exploration and Production (PTTEP) said that it is set to move ahead with an investment of about THB1.0trillion ($32bn) in the Bongkot and Erawan fields offshore Thailand.
The further development of the Bongkot and Erawan will be taken up to ensure continuity of natural gas production from the two offshore fields.
The Thailand state-owned company, through the investment, expects the producing Bongkot and Erawan gas fields to yield at least 700 million cubic feet per day (MMSCFD) and 800 MMSCFD, respectively.
The company has officially signed production sharing contracts (PSCs) for the two offshore fields located in the Gulf of Thailand.
In December 2018, PTTEP won the rights to become the operator of two offshore blocks G1/61 and G2/61, which contain the producing Erawan and Bongkot gas fields, respectively.
PTTEP said that its subsidiary PTTEP Energy Development (PTTEP ED) will move ahead with the work plan with a priority to make sure that there is no interruption in natural gas supply from the two offshore fields.
For the Bongkot field, where it is the existing operator, the company will continuously make investments and for the Erawan field it will execute the plan for transition of operations with immediate effect.
PTTEP ED is expected to collaborate closely with the Department of Mineral Fuels and the existing operator to ensure smooth operatorship transfer in 2022.
PTTEP president and CEO Phongsthorn Thavisin said: “The continuity of natural gas supply is the top priority of the government and the operators, we believe, as the benefits will be brought directly to the country and Thai people.
“The state agencies are determined to smoothly proceed the transition of operations and we have already prepared for this process. We also expect to win support from the existing operator of the Erawan field in order to make sure that the natural gas production in the future will be supplied uninterruptedly as it has always been carried out.”
In June 2018, PTTEP completed a previously announced $750m acquisition of a stake of 22.2% in the Bongkot field and adjoining acreage from Royal Dutch Shell. Following the completion of the deal, the Thai company holds a stake of nearly 66.7% stake in the Bongkot field while the remaining 33.3% stake is owned by Total.
For the Erawan gas block, the company won the bid in partnership with Mubadala Petroleum, with investment proportion of 60% and 40%, respectively.