Unocal Thailand Ltd. has signed contract amendments with the Petroleum Authority of Thailand (PTT) that will raise minimum daily sales of natural gas from Unocal's Gulf of Thailand fields by 48% during the next 2 years.
The amendments will increase PTT's average minimum gas purchases from Unocal to 740 MMcfd in late 1996 from the current 500 MMcfd.
"These contract amendments give us the secure growth market we need to continue our aggressive investment program in the Gulf of Thailand, including development of Jakrawan field," said Brian Marcotte, president of Unocal Thailand.
The increase in the contract volume reflects an anticipated jump in Thailand's natural gas demand, which PTT says is increasing 20%/year. PTT expects Thai gas consumption to leap to 2.4 bcfd in 1999 from 920 MMcfd this year.
SUPPLY VOLUMES
Marcotte noted that his company typically has supplied PTT more gas than called for in Unocal's sales contracts. In 1993, for example, Unocal produced an average 747 MMcfd when the contract specified a minimum of 500 MMcfd.
"We expect to produce 680 700 MMcfd in 1994 and as high as 820 MMcfd by the end of 1995 when the second major pipeline to Rayong, southeast of Bangkok, is installed," Marcotte said.
"With the uplift provision in the amended sales contracts, our contract quantity could go as high as 850 MMcfd, starring in late 1996 with the added production from Jakrawan field."
Jakrawan production will enable Unocal to reach a sustained 900 MMcfd from the Gulf of Thailand.
Under the new amendments, the contract volume was raised from the current 500 MMcfd to 630 MMcfd retroactive to last Aug. 1. Contract volume will advance to 700 MMcfd when PTT completes installation of the second pipeline to Rayong in second half 1995. The present pipeline, which stretches 280 miles between Unocal's Erawan field and PTT's gas separation plants at Rayong, is running at full capacity.
The sales minimum will rise to 740 MMcfd when Unocal installs a central processing platform in Jakrawan field, now scheduled for third quarter 1996. Production from Jakrawan's second development phase is to go on stream late in 1996.
WHAT'S COVERED
Contract amendments apply to all three Unocal gas sales areas, covering eight producing fields in the Gulf of Thailand.
The first contract area covers production from Erawan field, where Unocal holds an 80% interest and Mitsui Oil Exploration Co. Ltd. owns the remaining 20%.
The second contract area includes production from Satun, Platong, Kaphong, and Baanpot fields. Unocal has a 70% interest, Mitsui 30%.
In the third contract area, which includes production from Jakrawan, Surat, and Funan fields, Unocal owns a 71.25% interest, Mitsui 23.75%, and PTT Exploration & Production Public Co. Ltd. 5%.
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