U.S. oil and gas company Chevron and Thai PTTEP have placed submitted bids for the offshore blocks G1/61 and G2/62 in Thailand, offered under a production sharing contract (PSC) regime for the first time in the country’s history.
Worth noting, the blocks cover the producing Erawan and Bongkot gas developments, which are already operated by Chevron and PTTEP, respectively.
However, the two companies are now looking both take over the acreage they don’t have and to hold on to the acreage they already operate.
In a statement on Tuesday, PTTEP said it had submitted bids for Bongkot and Erawan gas fields “with confidence in its competitive proposals that will deliver the continuity in natural gas supply with competitive costs, ensuring energy security and creating higher benefits to the country.”
PTTEP said it would bid alone on Bongkot, while for the Erawan gas block, it will partner with Mubadala Petroleum (Thailand).
“Our expertise and experiences in the exploration, development and production for 25 years in the Bongkot field have positioned us as a prudent and strong operator. We will ensure continuity in natural gas supply with competitive costs, resulting in maximizing benefits to the country and creating energy security in the long term,” said Somporn Vongvuthipornchai, Chief Executive Officer.
According to Thai Department of Natural fuels, Chevron filed both bids in partnership with Mitsui.
Worth noting, France’s Total, which had prequalified for the bidding round, did not take part in the bidding.
According to Wood Mackenzie’s recent report Bongkot and Erawan fields currently produce a combined 2.2 bcfd, accounting for 70 percent of Thailand’s domestic gas production, but the existing concessions expire in 2022.
While the details on the bids have yet to be revealed, Wood Mackenzie earlier this year said that successful bidders would need to spend US$11 billion and US$6.4 billion for G1/61 and G2/61 respectively from 2020, excluding decommissioning costs. The winning bidder is expected to be revealed in December 2018.
Offshore Energy Today Staff