Shell to expand Thai holdings
Even though it tried to sell off its Thai holdings in 1998, Royal Dutch/Shell Group now plans to bid for four more blocks, Deputy Managing Director Luechia Wongsirasawat said.
BANGKOK�Even though it tried to sell off its Thai holdings in 1998, Royal Dutch/Shell Group now plans to bid for four more blocks, Deputy Managing Director Luechia Wongsirasawat said.
When trying to sell off its Thai concessions under the group's asset restructuring plan, Shell failed to attract a good price and cancelled its plan to sell the 25,000 b/d Sirikit Lan Krabue oilfield in Kamphaeng Phet province (OGJ, Oct 12, 1998, p. 41).
The change of heart might have come from an increase in reserves. Luechia said Shell had upgraded its oil reserves in the present concession to 130 million bbl from 110 million.
The Thai Department of Mineral Resources has announced a new round of bidding for petroleum concessions covering some 87 onshore and offshore blocks.
Shell is also considering a water-injection system to increase production from Sirikit Lan Krabue, Luechia said. When implemented in three to four years' time, the scheme would help maintain output at the current rate for the next 10 years, he said.
In addition, Shell is considering resuming oil production from its Nang Nuan oil field in the Gulf Of Thailand, which was closed in the early 1990s because of water seepage in the wells (OGJ Online, June 21, 2000).
Local media reports said higher crude prices provide impetus to test the field again.
Thailand produced 4.9 million tonnes of oil and consumed 35.7 million tonnes in 1999. Its gas production was 17.1 billion cu m, and consumption stood at 16.4 billion cu m.