UNOCAL HIKES GULF OF THAILAND GAS OUTPUT GOAL AGAIN
Unocal Thailand has again hiked its target for turn of the century natural gas production in the Gulf of Thailand.
The company plans to spend $1.4 billion ($860 million net for Unocal) during 1994-98 to bring Gulf of Thailand gas productive capacity to 1.1 bcfd by early 1999.
That compares with projections for Unocal Offshore Thailand potential gas output made earlier this year of 850 MMcfd (OGJ, Sept. 19, p. 36) and 900 MMcfd (OGJ, Nov. 7, Newsletter).
Meantime, Unocal's gas sales to state owned Petroleum Authority of Thailand (PTT) during the first 3 quarters of 1994 dropped more than 10% from a year ago as PTT stepped up purchases from another Offshore Thailand group.
In other Gulf of Thailand action, PTT let contracts totaling $153 million to two foreign groups to lay the second trunk pipeline to parallel the existing onshore/offshore system.
UNOCAL'S 5 YEAR PLAN
The company's 5 year plan for Offshore Thailand focuses on delineating and developing eight fields it operates under existing gas sales contracts and new fields, notably Pailin on Block 12/27.
During that period, Unocal plans to drill almost 400 wells and install another 32 production platforms. As many as four drilling rigs will be employed for exploratory, delineation, and development drilling.
Unocal Thailand Pres. Brian Marcotte estimated his company's Gulf of Thailand gross production will average about 700 MMcfd in 1994-95 (450 MMcfd net to Unocal). Deliveries are expected to rise to about 820 MMcfd (526 MMcfd net) in 1996. With added output from jakrawan field in late 1996, capacity for gross deliveries will jump to more than 900 MMcfd in 1997-98.
"Given the tremendous potential of our fields, coupled with the expanding gas market in Thailand, we feel that the goal of producing 1.1 bcfd is realistic after the Pailin field comes on stream in late 1998," Marcotte said.
Unocal has drilled eight successful wells in Pailin, and six more delineation wells are planned for 1995. The company is discussing a new gas sales contract for production from Pailin and other fields on Block 12/27 with state owned Petroleum Authority of Thailand (PTT).
Under its 5 year plan, capital spending for Unocal and its concession partners is expected to peak at $337 million in 1997, when the major phase of Pailin development is under way.
Marcotte noted that Unocal had made significant strides in cutting development and operating costs in Thailand. The company's drilling and operating costs per development well in Thailand have dropped 75%, to $1.3 million today from $5.3 million in 1980. At the same time, the number of rig days per well have fallen to less than 9 days from 68 days.
SALES DROP
Unocal Thailand's gas sales to PTT during the first 9 months of 1994 fell 10.9% from the same period in 1993 as a result of PTT slashing purchases from Unocal and increasing them from the Bongkot field group.
Deliveries from Unocal's eight gas fields in the Central Gulf of Thailand to PTT in the period fell 84 MMcfd from a year ago to an average 686 MMcfd. At the same time, condensate production dropped 8.46% to an average 26,543 b/d.
The drop in Unocal deliveries almost equals the incremental volumes PTT is buying from Bongkot gas field, operated by a group led by France's Total that includes PTT upstream unit PTT Exploration & Production (Pttep).
Pttep noted the incremental production from Bongkot, in which it holds a 40% interest, bolstered its third quarter profits, which rose 12.61% from a year ago to $6.42 million. Bongkot condensate production also increased in the period, to 3,496 b/d from 3,230 b/d.
Bongkot gas production is slated to increase to 250 MMcfd in 1995 under the current gas sales contract.
PTT cut gas purchases from Unocal in favor of those from Bongkot because throughput capacity of PTT's trunk pipeline in the gulf is limited to 850 MMcfd. Bongkot gas production has increased to 200 MMcfd this year from 150 MMcfd last year.
Unocal's cumulative production from the Gulf of Thailand from startup in 1981 to end of September 1994 totals 2.15 tcf of gas and 79 million bbl of condensate.
The number of wells Unocal has drilled in that period totals 780, and the number of platforms 66.
PIPELINE CONTRACTS
PTT let an $89.7 million contract to a combine of Saipem SpA, Italy, and EMC Ltd., U.K., to lay a 36 in., 413 km offshore pipeline from Unocal's Erawan gas field in the Central Gulf of Thailand to Mab Ta Phud in Rayong province on Thailand's eastern seaboard.
PTT let a $63.3 million contract a U.S.-Singapore joint venture of IPCO and Gregory & Cook to lay the onshore segment of the system a 36 in., 100 km line from Mab Ta Phud to Wang Noi in Ayutthaya province via Bang Pakong.
The contracts are part of the $800 million pipeline project that will double gas deliverability from Gulf of Thailand gas fields to the eastern seaboard from the current level by early 1996.
PTT earlier awarded other contracts related to the project, including: steel pipe supply contract to Napa Pipe, U.S., a Japanese group, and Italy's Ilva; pipe coating contract to Arabian Shaw; and an instrumentation and controls contract to MHI/ABB Lummus/Marubeni.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
Issue date: 12/12/94