Thai Shell Exploration & Production Co., a unit of Royal Dutch/Shell, hopes to increase its crude oil production in northern Thailand by about 8% to nearly 25,000 b/d by yearend. If its plan is successful, the incremental oil output of 1,500-2,000 b/d will come from a new production area known as Nong Makham, a part of Thai Shell's S1 concession.
The firm has been seeking approval from Thailand's industry ministry to bring Nong Makham on stream, and its production increase is contingent on receiving that approval by month's end.
The added oil output will augment Shell's oil production in the region, currently 23,000 b/d and coming mostly from Sirikit field, the kingdom's first commercial oil field. The Nong Makham production area is to the northwest of and adjacent to Sirikit; it lies in the Lan Krabue district of Kamphaeng Phet and the Kirimat district of Sukhothai.
Thai Shell hopes to begin its drilling program in the second half of October; a seven-well campaign is planned by yearend, said Martin Bradshaw, Thai Shell managing director.
Thai Shell operates the S1 concession in a joint venture with PTT Exploration & Production PLC, which has a 25% stake. Crude oil produced from S1, called Phet crude, is transported by road and rail from Lan Krabue district to Bangchak and Thailand's refineries. The gas that is produced in association with the crude oil is processed to recover LPG before it is sent to an Electricity Generating Authority of Thailand power plant near Sirikit field.
