PTTEP and its joint venture partners (the sellers) have agreed to sign an Amendment of the Pailin Gas Sales Agreement (the Pailin GSA), with PTT Public Company Limited (PTT) (the buyer). The details are as follows:
The joint venture partners will reduce Pailin gas price by 3% for the total sales volume, effective from October 1, 2003 to the completion date of the PTT’s third natural gas transmission pipeline in the Gulf of Thailand (in early 2006), and PTT will increase the Daily Contractual Quantity (DCQ) from 330 million cubic feet per day (mmcfd) to 353 mmcfd. The joint venture partners will pay the amount of 410 million Baht to PTT in advance as part of the gas price reduction upon the signing of the above mentioned GSA.
The joint venture partners will reduce Pailin gas price by 5% for the total sales volume, effective from the completion date of the PTT’s third natural gas transmission pipeline through the expiry of the Pailin GSA, and PTT will increase the DCQ from 353 mmcfd to 368 mmcfd.
PTTEP has a 45% stake in the Pailin Project located on Block B12/27 in the Gulf of Thailand. The other joint venture partners are Unocal Thailand as operator with 35%; Amerada Hess with 15% and Moeco Thai Oil Development Company with the remaining 5%.