PTT Exploration and Production Plc (PTTEP) is determined to increase petroleum production from the Erawan and Bongkot gas fields in the Gulf of Thailand to 1,500 metric million standard cubic feet per day (MMSCFD) in the next two years after lower domestic gas supply led to more imports of expensive liquefied natural gas.
The plan was unveiled on Thursday by Orachon Ouiyamapun, senior vice-president for financial affairs at PTTEP.
The company is the sole operator of Bongkot, having been recently allowed by Emirati government-owned Mubadala Petroleum (Thailand) Holdings, a key shareholder in Erawan gas business, to solely run gas production at Erawan.
PTTEP won a bid to renew its exploration and production rights at Bongkot, and another auction to succeed US-based Chevron Corp to operate Erawan in 2018.
A legal dispute between Chevron and the Department of Mineral Fuels over who would pay for the decommissioning of transferrable assets 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.
According to PTTEP, it can currently increase gas production at Erawan to 376 MMSCFD, up from 200 a few months ago.
The company plans to increase the volume to 800 MMSCFD within 24 months.
At Bongkot, PTTEP plans to increase gas production to 700 MMSCFD within 2023, up from 200 MMSCFD.
Gas business at the two gas fields will be run under production sharing contracts (PSCs), which replaced a concession-based model, said Ms Orachon.
PTTEP expects its average petroleum sales to increase to 467 kilo barrel of oil equivalent per day (KBOED) in 2022, up from 416 KBOED last year.
Sales in the first quarter of this year stood at 427 KBOED.