Thailand’s nationwide upstream firm PTTEP and US supermajor Chevron have boosted their upstream portfolios with the award of recent acreage offshore Thailand supplied within the nation’s twenty fourth licensing spherical.
PTTEP has received blocks G1/65 and G3/65, whereas Chevron was awarded a licence for Block G2/65, confirmed the Division of Mineral Fuels.
Thailand’s Cupboard on Tuesday authorized the awards, which met the standards set by the division underneath the nation’s present manufacturing sharing contract phrases.
Thailand expects investments of at the least 1.5 billion baht ($42.5 million) within the preliminary six-year exploration phrases whereas different bonuses for the three blocks quantity to some 640 million baht.
Blocks G1/65 and G3/65 cowl 8487 sq. kilometres and 11,646 sq. kilometres respectively, whereas Chevron’s new block G2/65 spans 15,030 sq. kilometres.
There was historic exploration on all three tracts and the DMF hopes that renewed work will rapidly translate into recent hydrocarbon manufacturing from the mature Gulf of Thailand.
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“We hope the brand new blocks can be finally added to our petroleum reserve portfolio after ready for 15 years,” Sarawut Kaewtathip, DMF director basic, was quoted by the Bangkok Put up.
The twenty fourth Spherical was launched final 12 months after a 15-year hiatus in licensing rounds in Thailand.
Technically confirmed play varieties
All three of the simply awarded blocks include prospects and play varieties which were technically confirmed by earlier exploration actions on close by acreage, the DMF earlier mentioned.
Blocks G1/65 and G2/65 are situated alongside the western a part of the Pattani basin, which is without doubt one of the largest Cenozoic sedimentary basins within the Gulf of Thailand, and has the best complete manufacturing fee of fuel, condensate and oil within the Gulf.
Block G1/65 contains areas A and B, with Space A containing the relinquished Jamjuree South manufacturing space. Block G3/65 — additionally has areas A and B. Space A is house to the relinquished Bussabong and Chang Dang manufacturing space, whereas Space B incorporates relinquished Pikul manufacturing space.
PTTEP’s minimal work dedication for Block G1/65 is the acquisition of greater than 250 sq. kilometres of 3D seismic or 2D seismic equal plus one exploration effectively apiece on Space A and Space B, with a complete spend of at the least $7.5 million.
For Block G3/65, which lies simply 35 kilometres offshore Narathiwat province, the corporate’s minimal seismic obligation is similar however is a requirement to drill three exploration wells — two of which should be in areas decided by the DMF.
PTTEP mentioned that successful these blocks aligns with the corporate’s funding technique, which goals to advertise progress in strategic focus areas.
“The proximity of those blocks to the corporate’s present operations will improve the potential for swift business growth and price optimisation,” confirmed PTTEP’s appearing chief govt, Suksant Ongvises.
“Furthermore, the manufacturing contribution from these two blocks would assist alleviate the priority over Thailand’s power safety.”
PTTEP will operates blocks G1/65 and G3/65 with 100% operated fairness.
In the meantime, Chevron should undertake the identical minimal seismic dedication plus drill two wildcats — one within the northern a part of Block G2/65 (dubbed Space A) and one in Space B, to the south of this tract.
Ronnarong Chanlekha, director of Chevron Offshore (Thailand), mentioned: “Chevron Offshore is happy to be entrusted by the federal government to be the contractor of the G2/65 discipline. This proper displays our dedication to persevering with our mission of delivering cleaner, safer and dependable power to help nationwide power safety and construct the nation’s long-term financial and social progress.
“By combining data and experience within the geology of the Gulf of Thailand with trendy know-how Chevron is assured that it may effectively develop petroleum offshore exploration block G2/65 to constantly strengthen the power safety for the nation.”
The awarded PSCs have a six-year exploration time period which, on software and approval, could be prolonged as soon as for as much as three years, to be adopted by a 20-year manufacturing interval.
The signing dates for these PSCs can be decided later.
Upstream has approached Chevron for additional particulars concerning its newly awarded property.
The so-called twenty fourth Spherical was the primary because the twentieth Spherical again in 2007 when a complete of 65 exploration blocks — 9 within the Gulf of Thailand and 56 onshore — had been supplied.
Subsequently 28 of those have been awarded — 21 onshore and 7 within the Gulf of Thailand — however of those, solely blocks G7/50 and 68/50 are at present in manufacturing, the DMF mentioned.