PTTEP opens Arthit taps

Thailand’s PTT Exploration & Production (PTTEP) said first gas had begun flowing from its Arthit gas project in the Gulf of Thailand.

PTTEP said in a statement that production had started on Wednesday at an initial rate of 80 million cubic feet per day. The company said it expected output to hit 200 Mmcf per day within a few days. Production is expected to hit full capacity of 330 Mmcf per day once a second compressor train is brought on line.

The company said the project would increase Thailand’s gas supplies for domestic use by 10% and was expected to have a life of 20 years.

Output from the field will boost PTTEP’s production this year to 233,334 barrels of oil equivalent.

The Arthit field covers about 3682 square kilometres in Thailand’s Navamindra Petroleum Area, about 230 kilometres off Songhla state. PTTEP said it had sunk about $1 billion into the project.

PTTEP operates the project with an 80% stake, with US supermajor Chevron holding 16% and Moeco, a Thai unit of japan’s Mitsui, holding 4%.