Chevron pledges smooth transfer of Erawan gas field
Chevron Thailand Exploration and Production Co's recently-appointed president Chatit Huayhongtong pledges to ensure a smooth transfer of its Erawan gas field, now facing a legal dispute, to new concessionaire PTT Exploration and Production (PTTEP).
The American multinational energy company last year resumed arbitration proceedings against the Department of Mineral Fuels in a bid to solve a dispute over who should pay for offshore asset removal under the production sharing contract model.
Chevron had earlier suspended the legal process to have more time to talk with the Energy Ministry on the issue.
Known as G1/61, Erawan, located in the Gulf of Thailand, is operated by Chevron, but its concession expires in April next year.
PTTEP, which won the auction for the G1/61 concession in December 2018, will be the new operator from 2022.
"Chevron Thailand will continue our commitment to support Thai energy security, including the safe transfer of Erawan, with our skilled workforce, technology and world-class safety and environmental standard," said Mr Chatit.
He did not elaborate on how the gas block will be transferred.
The Department of Mineral Fuels said in March it is trying to speed up the process to have PTTEP succeed Chevron after PTTEP expressed concern that the unsettled dispute may hinder its plan to access the gas field to install production facilities.
Mr Chatit has worked with Chevron for over 19 years.
His appointment took effect on May 1, following the retirement of his predecessor Pairoj Kaweeyanun.
- Erawan gas field