Thai oil and gas company PTTEP has become the official operator of the G1/61 offshore block, containing the Erawan, Platong, Satun, and Funan fields, as well as the G2/61 project, containing the Bongkot field, offshore Thailand.
Back in December 2018, PTTEP won bids to continue operating Bongkot and to become the operator of Erawan, in a major blow to the U.S. oil major Chevron, which was the operator of Erawan at the time, and which had filed a bid to take over Bongkot, too.
At the time when the bidding results were announced, energy intelligence group Wood Mackenzie said:""This is the second major loss for Chevron in South East Asia after losing its Rokan asset to Pertamina in Indonesia earlier this year. Chevron’s reserves and production in the region is now expected to fall drastically post-2022 and South East Asia could become a non-core region for the Major."
Montri Rawanchaikul, Chief Executive Officer of PTTEP, said that PTTEP assumed operatorship of the G1/61 project and the G2/61 project on April 24, 2022, which marked the first day of the Production Sharing Contract.
The company has continued its operatorship in the Bongkot field, and the G1/61 project was transferred from the previous operator - Chevron - to PTTEP.
"To assure a smooth and safe transition of G1/61 project as well as continuously satisfy national natural gas demand, PTTEP set up a war room at the Headquarter and the production platforms and worked closely with the Department of Mineral Fuels and the former operator of G1/61 project," PTTEP said.
"By assuming the operatorship of these sizable natural gas fields of the country, which are vital sources of energy with combined production capacity of 1,500 million cubic feet per day (MMSCFD) or 60% of the nation’s gas supply, we take pride in being Thailand’s energy company and strive to conduct our energy business for the country and all people the best we can,” Montri added.
According to PTTEP, on the date of operatorship handover, the natural gas production rate at the G1/61 was at 376 MMSCFD.
'PTTEP was not allowed to access G1/61'
"Due to the absence of continuous development and drilling activity prior to the operatorship transfer to PTTEP, the production rate will gradually decline from the exit rate. PTTEP was previously not allowed to access the site to proceed the preparation work including the drilling campaign as planned, even though the company was granted for site access in late of 2021, it was about two years behind the plan," PTTEP said.
"Consequently, PTTEP said will continue to produce natural gas from remaining resources of the existing production wells with utmost concern on safety and production stability. Therefore, the production rate will initially stay at approximately 250-300 MMSCFD. The company will thereafter execute its plan to ramp up the production rate to 800 MMSCFD within April 2024," PTTEP said.
183 production wells planned
PTTEP's execution plan includes the acceleration of 8 wellhead platforms and subsea pipeline installation, drilling campaign of 183 production wells, and procurement of additional 2 drilling rigs for another 52 production wells are all in place. PTTEP will also conduct equipment and system inspections as well as maintenance schedules to ensure the readiness and safety of the petroleum production.
With regards to the G2/61, the production will proceed accordingly to the work plan that sets to produce 700 MMSCFD of natural gas, the company said.
"In order to meet natural gas demand while the increase of production capacity at the G1/61 project is underway, PTTEP will attempt to boost up the production rates of the Bongkot field, the Arthit project and the MTJDA project by approximately 125 MMSCFD, 60 MMSCFD, and 30-50 MMSCFD, respectively. In total, the production output will be raised by 200-250 MMSCFD to minimize impacts on Thailand," PTTEP added.