UAE-based Mubadala Petroleum has signed a Production Sharing Contract (PSC) together with its Thai partner PTTEP for offshore Block G1/61 containing the Erawan producing gas field in Thailand.
The current Block G1/61 concession will expire in April 2022 and PTTEP will then assume the operatorship. PTTEP will hold a 60 percent participating interest and Mubadala Petroleum will hold a 40 percent participating interest in the PSC.
Mubadala said earlier this week that its joint bid with PTTEP in the competitive auction was successful as announced in December 2018 by Thailand’s Ministry of Energy.
Commenting after the signing, Mubadala Petroleum’s Chief Executive Officer, Dr Bakheet Al Katheeri, said: “Mubadala Petroleum is proud to be contributing to Thailand’s energy security with our investment in the G1/61 PSC while we also mark the beginning of an important new partnership with PTTEP ED. We look forward to working closely together with PTTEP ED to efficiently and safely produce gas and further develop the Erawan field to safeguard Thailand’s long-term domestic gas supply.
“The Erawan field is Mubadala Petroleum’s first gas project in Thailand, where we are currently one of the largest crude oil operators with three producing fields. This large-scale, long-term producing gas asset will contribute to our overall growth strategy by increasing the proportion of gas in our producing portfolio while also building on our recent gas-focused acquisitions in Egypt and development of the Pegaga gas field in Malaysia.”
As reported earlier this week, Thailand’s PTTEP has signed production sharing contracts for the Erawan and the Bongkot fields in the Gulf of Thailand, after beating Chevron for the operatorship of the fields in December 2018.
The Thai company plans to invest almost $32 billion in these two 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 campaign of the exploration and production wells and the construction of additional wellhead platforms.