PTTEP Wins 3 New Concessions in Thailand

Dr. Chitrapongse Kwangsukstith, President of PTT Exploration & Production Public Company Limited informed that the company signed a Concession Agreement with the Department of Mineral Fuels, Ministry of Energy for interest with operatorship in the offshore Block G 9/43. PTTEP also signed two additional Concession Agreements to participate in offshore Block G 4/43 and onshore Block L 22/43. This was resulted from Thailand's 18th Petroleum Bidding Round.

Block G 9/43 is part of Thai-Cambodian Overlapping Claims Area in the Gulf of Thailand. It is located off the coast of Surat Thani Province, covering eastern part of Pattani Basin approximately 2,619 square kilometers. This Block is identified as high petroleum potential region of natural gas and condensate since it is close to producing gas fields namely Trat, Funan and Gomin. PTTEP will be able to start operations after the resolution of the dispute between the two countries is concluded.

Dr. Chitrapongse said " PTTEP, as the sole Thai exploration and production company, recognizes our mission to the country in securing petroleum reserves for long term growing national demand. The petroleum to be produced from this Block will also enhance Thailand's energy stability in the next ten years."

The offshore Block G 4/43 is located off the coast of Prachuap Khirikhan Province, in the Gulf of Thailand, with a total area of 9,686 square kilometers. The Block is identified as petroleum-rich region of both crude oil and natural gas. This Block is situated next to Block B 8/32, covering large crude oil and natural gas fields called Benchamas, Tantawan and Jamjuree, which is under production. Currently, Chevron (Offshore) Thailand Limited (Chevron) is the operator of Block B8/32 which currently produces approximately 55,000 barrels of crude oil per day (BOPD) and 200 million standard cubic feet of natural gas per day (MMSCFD). The Ministry of Energy awarded this new concession block to Chevron with PTTEP having its right to invest 15% participating interest in this block as a joint venture partner. Moreover, PTTEP might be able to increase an additional 15% participating interest upon proven block's commerciality. By this agreement, The Company has committed to spend approximately US$ 3 million during the first three years of operations.

The onshore Block L22/43 covered the area of 3,632 square kilometers in Pitsanulok and Pichit Provinces. . This Block is identified as an oil prone region. Block L 22/43 is adjacent to Sirikit Oil field (Block S1), the largest onshore oil field in Thailand. S1 is now operated by Thai Shell Exploration and Production Company Limited. The Ministry of Energy awarded this new concession block to Thai Shell Company Limited (Thai Shell) with PTTEP having its right to invest 35% participation interest in this block as a joint venture partner. By this agreement, The Company has committed to spend approximately US$ 0.7 million during the first three years of operations.

Dr. Chitrapongse concluded " Being partners in the offshore Block G4/43 and onshore Block L22/43 with Chevron and Thai Shell, PTTEP believes that it will guarantee Thailand uninterrupted petroleum supply as well as help increasing PTTEP's oil portfolio for long term security of the country. Moreover, in the development phase of these two new blocks, we plan to share current facilities of Blocks B 8/32 and S1 which would significantly help saving operational expenses and production cost.
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