By an OGJ correspondent
BANGKOK, Mar. 3 -- The Thai unit of Unocal Corp., Unocal Thailand Ltd., and its partners said they have earmarked nearly $300 million for natural gas development in the Gulf of Thailand in a bid to sustain production. This amount is slightly less than what was spent by the group to complete the development of North Pailin gas field (OGJ Online, July 8, 2002).
For 2003, the Unocal-led consortium plans to drill about 140 wells vs. the 250 wells drilled in the area last year. To date, the group has drilled 1,785 wells and installed 108 platforms.
This year's plans are geared towards exploring for additional oil and gas resources in the Gulf of Thailand, supporting the efforts of PTT Exploration and Production PLC (PTTEP) to develop the Arthit gas field in the gulf, and raising crude oil production from its own offshore tracts, according to Randy Howard, president of Unocal Thailand.
This year, the group aims to maintain its offshore gas delivery at levels reaching those of last year—about 1.07 bcfd of gas and 35,000 b/d of condensate. The group also expects to raise crude oil output to 20,000 b/d from the 12,000 b/d produced last year. Production comes from 14 fields. The group's gas production represents more than 30% of the total gas supply to Thailand.
Cumulative investment by Unocal and its partner reached $7 billion last year, and Howard expects a continuation of high-level investment by the group over the next several years. Over the last 3 years, the group has been able to find more gas reserves in the gulf than it produced at the same time with "reserves replacement efficiency" being rated at 150%, he said.
"We think there is more gas to be discovered in the Gulf of Thailand, but it is unlikely to be (as much of) a jump in the reserves figures as we have achieved in the last decade," noted Howard.
Howard said the development of Arthit gas field, in which it has a 16% stake, and the addition of the third gas trunk line are critical steps to the group providing Thailand with additional domestic natural gas.
Development plans are under way by PTTEP for the start of Arthit gas production in 2006 into PTT PLC's third gas trunk line in the Gulf of Thailand to Rayong on the eastern coast.
