Tevin Vongvanich, President and CEO of PTT Exploration and Production Public Company Limited or PTTEP, disclosed that on April 3, 2014, the company signed a Farm-in/Farm-out Agreement with BG Group.
The deal is for 4 predominantly deep water blocks with 25% participation interest. This is PTTEP’s first step in expanding investment in petroleum exploration in South America.
The 4 petroleum exploration blocks; namely BAR-M-215, BAR-M-217, BAR-M-252 and BAR-M-254; cover an area of approximately 3,077 square kilometers in the Northeastern deep water of Barreirinhas basin, Atlantic Ocean, Brazil.
Upon approval from the Brazil’s National Agency of Petroleum, Natural Gas and Biofuels (ANP), PTTEP BL will hold 25% interest while BG Brasil, the operator will hold 75% participation interest in such blocks.
“The signing of this agreement with BG Brasil is a significant and the first step for PTTEP to expand its investment in South America which is one of the highest potential oil resources of the world. This year, the joint-venture partners plan to commence a multi-client 3D seismic survey in the 4 blocks to assess preliminary potential,” said Vongvanich.
At present, PTTEP has invested in over 40 petroleum exploration and production projects in Southeast Asia, Middle East, Africa, Australia, North America and, now, also in the South America continent.