The Department of Mineral Fuels has renewed licences to produce natural gas at Bongkot gas field for PTT Exploration and Production Plc (PTTEP), enabling the company to continue with its plan to secure sufficient gas supply for Thailand.
A gas production licence for block 15 at Bongkot, located in the Gulf of Thailand, expires in April next year while the licences for blocks 16 and 17 expire in March, 2023.
PTTEP is required to transfer certain assets for gas exploration and production to the department under the production-sharing contract (PSC) model, said department chief Sarawut Kaewtathip as he signed an asset transfer agreement with PTTEP on Tuesday.
Thailand has replaced a concession-based contract with the PSC model, which grants the government a right to own and regulate usage of assets of energy companies.
PTTEP is given permission to operate at Bongkot, Erawan and Arthit gas fields, all of which are in the Gulf of Thailand.
The company won an auction to be the successor to US-based Chevron Corp, whose concession at Erawan expires in April next year, but it is unable to enter the site because of an unsettled dispute between Chevron and the Department of Mineral Fuels over who will pay for transferable asset decommissioning.
A worry over insufficient gas supply caused PTTEP to plan for an increase in gas production at Bongkot to 850 metric million standard cubic feet per day (MMSCFD), from 700 MMSCFD at present, in order to offset a decline in gas production at Erawan.
PTTEP also plans to increase gas production at Arthit to 330 MMSCFD, from 220 MMSCFD at present.