PTTEP wins bid for Bongkot and Erawan Ready to invest to ensure continuity in natural gas supply for the country
13 Dec 2018
Bangkok, December 13, 2018 – PTT Exploration and Production Public Company Limited (PTTEP) confirms its readiness to continue the operatorship in the Bongkot gas field and to become the operator in the Erawan field starting from 2022. The company will move forward with the field development plans to ensure continuity in natural gas supply for the country’s energy security.
Phongsthorn Thavisin, PTTEP Chief Executive Officer, refered to the Energy Ministry announcement regarding the bidding results of the expiring Bongkot and Erawan concessions that PTTEP has won the bids for both fields. PTTEP is committed to delivering benefits for the country as proposed.
“Throughout 20 years of experience in operating the Bongkot field, and as a joint venture partner in the Contract 3 project which covers major area of the Erawan field, PTTEP has accumulated a sound technical understanding of both fields. 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 800 MMSCFD 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. We expect good support from the existing operator, the Department of Mineral Fuels and government agencies so that we can start the required activities immediately to ensure the continuity of natural gas supply,” said Phongsthorn
Through decades of operation, the Bongkot and the Erawan gas fields have proved certain amount of petroleum reserves. These insights assure PTTEP the potential of the fields and allow the company to better manage risks and operational costs comparing to the initial phase which involved more exploration activities and substantial amount of capital expenditure for one-time investment of production platforms. Our continuous efforts in operational improvement have led to further reduction in production cost. Being an operator in the Bongkot and Erawan fields will bring about more effective cost management from the operational synergy in the Gulf of Thailand and economy of scale from combined work scope such as procurement and logistics among both fields.
The aforementioned capabilities and readiness allow us to submit bid proposals with benefits to the country while maintaining an appropriate return on investment. PTTEP is determined to be the key player of petroleum exploration and production in Thailand, creating energy security for the country and delivering maximum benefits to the Thai people.
PTTEP submitted bid solely on the Bongkot field, and partnered with Mubadala Petroleum (Thailand) Ltd. on the Erawan gas block, with investment proportion of 60% and 40%, respectively. The Bongkot and Erawan gas fields are considered the vital indigenous sources of energy supply to Thailand with a combined natural gas production that accounts for 60% of total domestic outputs.
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The information, statements, forecasts and projections contained herein reflect the Company’s current views with respect to future events and financial performance. These views are based on assumptions subject to various risks. No assurance is given that these future events will occur, or that the Company’s future assumptions are correct. Actual results may differ materially from those projected.