BANGKOK, Thailand???PTTEP?has signed production-sharing contracts for the G1/61 (Erawan field) and the G2/61 (the Bongkot field) concession?offshore Thailand.
The company said its chief priority was to ensure uninterrupted supply of gas from both fields. At Bongkot, where it was already operator, it will maintain investments in the project; transfer of operatorship of G1/61 from Chevron is due to take place in 2022. The company aims to retain staff currently engaged at Erawan.
PTTEP plans to spend around THB1 trillion ($31 billion) on both fields to maintain respective output of at least 700 MMcf/d and 800 MMcf/d, including drilling of new exploration and production wells and the construction of additional wellhead platforms.
It will also work to reduce operating costs by around 20-25% through cost optimization. This will be achieved through operating synergies in both fields in terms of drilling, wellhead platform construction and installation, logistics and procurement.
From 2022 onward, the company will operate around 80% of gas production in the Gulf of Thailand.