PTTEP ED plans to pour investment of approximately THB 1 trillion in the Bongkot and Erawan fields to safeguard the production volumes of at least 700 million cubic feet per day (MMSCFD) and 800 MMSCFD, respectively. The investment includes the drilling campagin of the exploration and production wells and the construction of additional wellhead platforms, for examples.

“As the Thai E&P company, we are committed to exploring for reliable energy sources for the state and Thai people. From 2022 onward, about 80% of the natural gas production in the Gulf of Thailand will be under our operations. This means PTTEP will become the largest producer of natural gas in the country, demonstrating our success in carrying out the mission to establish energy security to Thailand,” said Phongsthorn.

Regarding the manpower working for the Erawan field, PTTEP ED is pleased to work with all personnel who is ready to continue their duties and jointly create energy security. The plan of human resources in the field should be concluded within this year.

Commitment in the PSC will benefit the state, Thai people and the company’s business

Phongsthorn continued that the price constant of THB 116 per million British Thermal Unit (BTU) PTTEP ED proposed to the government is reasonable and will bring benefits to the state and Thai people. Meanwhile, acceptable return on investment for the company is also expected. PTTEP ED is able to offer such a lower price constant for gas sale as it sees the benefits and efficient operations from being the operator in both fields. Having the Erawan field in its portfolio will contribute higher gas production volumes as well as increased revenues. Importantly, PTTEP expects to bring down the operational costs of approximately 20-25% by cost optimization from the operating synergy in both fields in general administration, drilling, wellhead platform construction and installation, logistics and procurement.

“Through the comprehensive analysis, we are confident that our proposals submitted in the bid will create mutual benefits to all relevant parties. For the sake of the country, we will be able to provide energy security. Thai people should be satisfied with the lower electricity price, which is the end result from decreased gas price. Meanwhile, PTTEP’s business remains profitable,” he said.

KeyFacts Energy Thailand country page   l   Link to PTTEP Thailand country page