Thailand awards ChevronTexaco, Shell exploration blocks

By an OGJ correspondent

BANGKOK, June 2 -- Thailand separately has awarded two prospecting blocks in Thailand to ChevronTexaco Corp. and Royal Dutch/Shell Group.

The action followed 6 months of delay caused by the transfer of oil exploration and production supervision from Thailand's Industry Ministry to the newly created Energy Ministry in fourth quarter 2002 and modification of terms originally proposed 3 years ago. Amendments include additional benefits to the government and an increase in the stake-holding option for PTT Exploration & Production PLC, the largely state-owned concern (OGJ Online, Oct. 2, 2002).

Chevron Offshore (Thailand), the local subsidiary of ChevronTexaco, is now entitled to Block G4/43, an oil and gas-prone area of 9,686 sq km in the Gulf of Thailand off Prachuab Khiri Khan.

Chevron Offshore holds the majority stake in the new acreage, which it thought would be an extension of its Block B8/32 that produces about 60,000 b/d of oil and 240 MMcfd of gas. PTTEP has an initial 15% interest in G4/43 and an option to acquire another 15%, PTTEP officials said.

Thai Shell Exploration & Production Co., part of Royal Dutch/Shell, was granted Block L22/43, an onshore oil-prone area of 3,632 sq km adjacent the S1 acreage in the northern provinces of Pitsanulok and Pichit, where the firm has been producing nearly 20,000 b/d of oil (OGJ Online, Mar. 10, 2003).

Thai Shell has a 65% stake in the new tract, with PTTEP holding a 35% share, up from the 25% originally offered.

The Thai cabinet also agreed to award PTTEP Block G9/43, a 2,619 sq km gas tract said to be gas and condensate prone in the overlapping area between Thailand and Cambodia in the Gulf of Thailand, but PTTEP cannot explore the area until the countries settle their territorial disputes.