Thai Chevron to Invest Over $650M to Develop Platong II

KAMPALA, Uganda Sep 14, 2007 (Dow Jones Newswires)

A Thai unit of Chevron Corp. (CVX) plans to invest more than $650 million over the next few years to develop the Platong II natural gas project in the Gulf of Thailand, a company spokeswoman said Friday.

The investment is conditional on a gas sales agreement with Thai oil and gas conglomerate PTT PCL (PTT.TH), the spokeswoman told Dow Jones Newswires.

Chevron Thailand Exploration and Production Ltd. is currently undertaking front-end engineering and design work for the Platong II project, which is estimated to start production early next decade, she said.

The project will add 330 million standard cubic feet per day of processing capacity in the Platong area, she said.

The project includes a central processing platform, five initial well head platforms, and a pipeline connecting to the pipeline network of the country's sole natural gas buyer PTT PCL (PTT.TH).

Discussions about the gas sale price are ongoing and the company expects to finalize the agreement in the near future, the spokeswoman said.

"A gas sales agreement will pave the way forward for the development of this important project."

Chevron, Thailand's largest natural gas supplier, produced more than 144,000 barrels of oil and condensate and 1.6 billion gross cubic feet of natural gas in 2006.

Copyright (c) 2007 Dow Jones & Company, Inc.

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