Thailand awards five more production licenses

Thai authorities have granted five new production licenses to existing concessionaire groups led by Royal Dutch/Shell, Pacific Tiger Energy, Harrods Natural Resources, and PTT Exploration & Prod.

By an OGJ correspondent

BANGKOK, Oct. 22 -- Thai authorities have granted five new production licenses in Thailand to existing concessionaire groups led by Royal Dutch/Shell Group, Pacific Tiger Energy Inc., Harrods Natural Resources Inc., and PTT Exploration & Production PCL (PTTEP). The awards follow on the heels of seven other onshore and offshore blocks awarded earlier this month by Thailand's Ministry of Industry after a 2-year delay (OGJ Online, Oct. 2, 2002).

The latest approval, covering a total production area of 168 sq km both offshore and onshore, will add 100 MMcfd of natural gas, 15,000 b/d of crude oil, and 1,000 b/d of condensate to Thailand's rising indigenous petroleum output. Thailand's locallyproduced petroleum production, mostly natural gas, increased 5.8% in the first 7 months of this year to 463,000 boe/d.

The group headed by PTTEP was granted the right to produce from a 1.93 sq km area in Pikun field, on Block B13/38 in the Gulf of Thailand.

Harrods Energy (Thailand) Ltd. was issued the license to produce from a 48.64 sq km area in Jasmine field, on Block B5/27 in the Gulf of Thailand.

Pacific Tiger Energy was authorized to produce from a 8.69 sq km area in Wichian Buri License II field, lying on onshore Block SW1A.

Thai Shell Exploration & Production Co. Ltd. was granted the right to produce from the 90.43 sq km tract in South Pratu Tao prospect, part of the onshore Block S1.

The consortium led by PTTEP obtained the rights to produce an area of 18.28 sq km in Tong Rang field, on Block 15 in the Gulf of Thailand.

The Thai government is expected to receive $65 million in royalties and $80 million in income tax based on production from these sources.

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