PTT Exploration and Production (PTTEP) expects its oil and gas sales in 2023 to tally 456 kilo-barrels of oil equivalent per day (KBOED), down from a target of 470 KBOED, because of various factors including a production decrease at some petroleum sites.
A drop in production is likely at gas and oil fields in Malaysia during the second quarter, said Orachon Ouiyamapun, PTTEP's senior vice-president for finance, without providing further details.
Another factor is a change in the calculation of the sales volume at the Bongkot gas field in the Gulf of Thailand, she said. The calculation is now based on production-sharing contracts, replacing a concession-based model.
The gas price in the second quarter of 2023 is estimated at US$5.9 per million British thermal units (BTU). For the whole year, the price is estimated to average $6 per million BTU, according to PTTEP.
The company won a bid to renew its exploration and production rights at Bongkot, along with an auction to succeed US-based Chevron Corp to operate the Erawan gas block in 2018.
The latter is also located in the Gulf of Thailand.
Despite the drop in petroleum sales, especially in overseas markets, PTTEP will continue to push ahead with its plan to increase production capacity at Erawan to 400 million metric standard cubic feet per day (MMSCFD) by the middle of this year, up from 200 MMSCFD at present.
The company set a target to ultimately increase production to 800 MMSCFD.
A legal dispute between Chevron and the Department of Mineral Fuels over which party would pay for the decommissioning of transferable assets previously led to a two-year delay in PTTEP's plan to enter Erawan to prepare for gas production. The problem was blamed for causing a drop in gas production at the block.
Lower domestic gas supply caused Thailand to import more liquefied natural gas (LNG) for power generation.
A surge in LNG prices last year drove up electricity bills.