By an OGJ correspondent
BANGKOK, July 30 -- Thai authorities have agreed to extend concession rights of groups led by Chevron Corp. and PTT Exploration & Production PLC (PTTEP) for 10 years to 2022. The extensions enable the country's two largest gas producers to continue operating their gas-condensate fields in the Gulf of Thailand after the current licenses expire in 2012.
The extension was endorsed by the Petroleum Committee at Energy Ministry but subject to final cabinet approval, which is expected in the next several weeks.
Chevron, which assumed the rights on Gulf of Thailand blocks operated by Unocal Corp. before it was assimilated into Chevron in 2005, expects to produce 5 tcf of gas and 264 million bbl of condensate from the blocks during the 10-year extension period.
In return, the Chevron group will pay the government $750 million in fees, including production royalties during the period, according to senior ministry officials.
The group also is committed to spending $8 billion in development on Blocks U1, U2, and U3, including installing 91 platforms and drilling 2,290 wells.
PTTEP and partners Total and BG were obliged to $1.6 billion in spending to further develop the Bongkot gas structure with the proposed installation of 11 offshore units and drilling of 90 wells.
During the period, the PTTEP alliance will ramp up its gas output by 330 MMcfd from the current level of 640 MMcfd.
Bongkot fees, including production royalties, were estimated at $500 million.
