PTTEP to bid for new licences in the Gulf

PTTEP to bid for new licences in the Gulf

The Erawan gas field in the Gulf of Thailand.
The Erawan gas field in the Gulf of Thailand.

PTT Exploration and Production Plc (PTTEP) is preparing to join a new auction for petroleum exploration and production licences in the Gulf of Thailand, part of the government's efforts to increase the domestic gas supply.

The licences, to be granted under the 24th round of auctions covering three offshore areas, does not include the Erawan and Bongkot gas blocks, currently operated by PTTEP.

Orachon Ouiyamapun, PTTEP's senior vice-president for finance, said yesterday that the company has yet to conclude whether it will take part in the auction on its own or form a partnership with other firms before bidding for new petroleum development projects.

The decision will be taken once PTTEP finishes a technical study of the projects, she said.

Companies interested in the auction are required to submit applications to the Department of Mineral Fuels between Sept 5-16.

PTTEP is also participating in another auction held by Malaysian national oil and gas conglomerate Petronas. Its Malaysia Petroleum Management unit has called for bids for 14 petroleum blocks this year.

The Thai company earlier won the right to explore a petroleum source in Malaysia in the 2021 bidding.

PTTEP was awarded a licence for the exploration of Block SB412, located off the northwestern coast of Sabah through its subsidiary, PTTEP HKO, which formed a partnership with SapuraOMV.

Ms Orachon said PTTEP is allocating capital expenditure of US$3 billion for its business this year. The largest portion of the money will go to ongoing development of oil and gas production projects across Asia and the Middle East.

The company expects sales volumes in the third quarter of this year to increase to 481 kilo-barrels of oil equivalent per day (KBOED), up from 446 KBOED last year.

The increase is based on an estimate that the global crude oil price will stand at $101 per barrel and the gas price in the global market will average $6.4 per million British thermal units in the second half of this year.

In another development, PTTEP is investigating a leakage at an onshore gas pipeline from the Zawtika gas field in Myanmar. The incident caused the suspension of gas deliveries to Thailand.

The volume of gas supply from Zawtika is 240 metric million standard cubic feet per day, which accounts for 5.4% of gas consumption in Thailand.

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