PTT Exploration and Production Plc (PTTEP) expects its sales of oil and gas this year will reach a new high of 470,000 barrels of oil equivalent per day (boed), driven by gas supply from the Erawan field in the Gulf of Thailand.
Sales totalled 468,000 boed last year.
Orachon Ouiyamapun, senior vice-president for finance, attributed the increase to a doubling of gas production at Erawan.
She said gas production at Erawan is currently 210 million metric standard cubic feet per day (MMSCFD), a sharp drop from 800 MMSCFD, as PTTEP faced a two-year delay before it could enter the gas block to prepare for production.
The problem stemmed from a legal dispute between its predecessor, US-based Chevron Corp, and the Department of Mineral Fuels over decommissioning costs once Chevron’s concession ended.
The company expects gas production to increase to 400 MMSCFD in the middle of this year and 600 MMSCFD by the end of 2023.
PTTEP estimates gas prices will increase to US$6.20 per metric million British thermal unit (MMBTU) this year, up from $6.10 per MMBTU.
Dubai crude oil reference prices are expected to range between $85 and $95 per barrel, down from an average of $96.38 last year.
PTTEP participated in the 24th auction for licences for offshore petroleum exploration and production at three new sites in the Gulf of Thailand.
The three blocks were partially explored decades ago but have yet to be developed into new production sites due to the impact of political conflicts in the country.
They are the 8,487-square kilometre G1/65, the 15,030-sq-km G2/65 and the 11,646-sq-km G3/65.
The Department of Mineral Fuels is scheduled to announce the winners of the auction this month, said Ms Orachon.
A petroleum exploration period will last six years and can be renewed.
She said PTTEP’s additional petroleum production also come from the Yadana gas field in Myanmar, Algeria HBR (1st phase) and Oman Block 61.