PTTEP has completed the process of taking over from Chevron as the operator of the large Erawan gas and condensate field in the Gulf of Thailand.
The Thai company said the handover of operatorship was completed on 24 April, which marked the first day of the new production sharing contracts for the Erawan and Bongkot fields.
PTTEP is now the sole owner of the Bongkot field, and has a 60% ownership in the Erawan asset with partner Mubadala Petroleum on 40%. Chevron no longer has equity in Erawan, while TotalEnergies is no longer involved in Bongkot.
PTTEP once again expressed concern it was not allowed access to the Erawan site to complete certain works in preparation for taking over as operator.
“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 [approval] for site access in late of 2021, it was about two years behind the plan.”
As at 24 April, the natural gas production rate from the Erawan field in Block G1/61 was 376 million cubic feet per day of gas.
“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,” the new operator said.
The production rate will range between 250 MMcfd and 300 MMcfd, but PTTEP plans to raise it to 800 MMcfd by April 2024.
This execution plan includes the acceleration of eight new offshore wellhead platforms, subsea pipelines, drilling of 183 production wells and the procurement of two additional drilling rigs for another 52 production wells.
In terms of Bongkot in Block G2/61, PTTEP was already the operator and the production work plan is to produce 700 MMcfd of gas.
In order to meet natural gas demand in Thailand while the Erawan campaign is under way, PTTEP will attempt to boost production rates at the Bongkot field, the Arthit project and the MTJDA project by 125 MMcfd, 60 MMcfd, and 30 MMcfd to 50 MMcfd, respectively, “to minimise impacts on Thailand”.
“PTTEP has continually upheld and been committed to execute our missions in strengthening national energy security,” PTTEP chief executive Montri Rawanchaikul 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 1500 million cubic feet per day, 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 the people the best we can.”