New Mideast Operator PTTEP Reaches Milestone

PTT Exploration and Production Public Company Limited or PTTEP, the Operator of Oman 44 project, on February 10 began producing natural gas and condensate from Shams Field in the Sultanate of Oman.

H.E. Dr. Mohammed Hamed Saif Al-Rumhy, Minister of Oil and Gas, Sultanate of Oman and H.E. Dr. Piyasvasti Amranand, Minister of Energy, Thailand witnessed the inauguration of Shams Central Processing Plant or SCPP which took place at Shams field on February 10, 2007.

Shams field is part of Oman 44 project located in Suneinah desert, about 300 kilometers west of Muscat, the capital of the Sultanate of Oman.

PTTEP signed an Exploration and Production Sharing Agreement with the Sultanate of Oman's Ministry of Oil and Gas (MOG) became the Operator with 100% interest in July 21, 2002. PTTEP Oman, a subsidiary of PTTEP and the Operator of Oman 44 project, drilled the exploration and appraisal wells, installed the production and pipeline facilities and related infrastructure including Shams Central Processing Plant to boost up the production.

In the beginning, Shams field production capacity will be 50 million standard cubic feet per day of natural gas and 4,000 barrels per day of condensate. Natural gas from Shams field will be sold to Ministry of Oil and Gas, Sultanate of Oman according to the Exploration and Production Sharing Agreement signed on April 27, 2005. Condensate will be imported to PTT Public Company Limited or PTT in Thailand.

Mr. Cherdpong Siriwit, Chairman of PTTEP, stated that PTTEP have always been aware of the great support received from the Ministry of Oil and Gas, the Sultanate of Oman and the Ministry of Energy, Thailand. The commencement of the natural gas and oil production from Shams field ushers in the new era of cooperation in petroleum exploration and production between the Sultanate of Oman and Thailand.

Mr. Maroot Mrigadat, President of PTTEP, said during the inauguration that part of the success is attributed to the good cooperation from the local communities near the Shams field. In addition, Thai and Omani officials who worked side by side in good harmony with good determination and dedication contributed much to the progress of the project.

"Shams Field is the first exploration, development and production project that PTTEP is the Operator in the Middle East. The Inauguration of Shams Field today not only makes us proud, but it also gives us the comforting thought that we are contributing to Thailand's energy security as well. Shams' condensate delivered to Thailand will alleviate the burden of heavy petroleum import. Our contribution may be small now but it is a significant step that we take on the road towards energy security in the long term." Mr. Maroot said.