By an OGJ correspondent
BANGKOK, Jan 3 -- PTT Exploration & Production PLC (PTTEP) plans to spend $36 million over the next 2 years developing Phu Horm gas field in northeastern Thailand, which is emerging as Thailand's largest onshore gas field. Preliminary estimates put gas reserves at 300-700 bcf. Amerada Hess (Thailand) Ltd. is operator.
PTTEP is acquiring a 20% stake in Block EU-1, one of two tracts on which the field lies, and it already holds a 20% stake in Block E5N, the other acreage on which the field is situated.
Following PTTEP's buy-in to EU-1, Amerada Hess holds a 35% share in Phu Horm, Apico LLC has 35%, and ExxonMobil Exploration & Production Khorat Inc. 10%.
Exploration has been described as very successful (OGJ Online, June 9, 2003). Phu Horm is expected to come on stream in 2006 at a potential production rate of 85-100 MMcfd.
The Phu Horm structure covers 231.6 sq km in Udon Thani and Khon Kaen provinces, or about 45 km north of Nam Phong, the declining gas field operated by ExxonMobil.
Negotiations are in progress to sell the gas to PTT PLC, Thailand's natural gas distribution monopoly.
