Units of Unocal Corp. have unveiled more details about plans to serve Thailand's growing gas markets with supplies from nearby offshore fields.
Unocal Thailand Ltd. will continue development of Jakrawan gas field in the Gulf of Thailand with a $423 million, 144 well program expected to increase field production to about 150 MMcfd of gas by fourth quarter 1996.
Unocal Thailand Pres. Brian W.G. Marcotte said Jakrawan, with reserves estimated at 600 bcf of gas and more than 11 million bbl of condensate, will produce well into the 21st century.
Meantime, Unocal Myanmar Offshore Co. Ltd., a unit of Total of France, and Myanma Oil & Gas Enterprise (MOGE) signed a memorandum of understanding to supply PTT with gas from Yadana held off Myanmar in the Gulf of Martaban. Terms of the 30 year deal call for 130 MMcfd of gas to begin flowing from Yadana to PTT in mid 1998, increasing to 525 MMcfd within 15 months.
JAKRAWAN FIELD
"The additional development of Jakrawan field is central to continued expansion of gas production in the Gulf of Thailand," Marcotte said.
Announcement of plans for Jakrawan's second phase development came a week after Unocal Thailand said it had agreed to hike gas sales to Petroleum Authority of Thailand (PTT) to 740 MMcfd in the next 2 years from about 500 MMcfd at present (OGJ, Sept. 12, p. 105).
Also, Unocal is expanding energy resource operations in Southeast Asia, including opening offices in Beijing, Hanoi, and Singapore.
Jakrawan production is to begin ramping up after completion of a second major pipeline to Rayong, Thailand, from nearby Erawan gas field.
In addition to drilling 144 development wells, Jakrawan's Phase 2 program calls for installation of a central processing platform and 12 wellhead platforms. Jakrawan platform fabrication is to begin in mid 1995 with completion expected by mid 1996.
Jakrawan is one of six fields covered by Unocal's third contract area in the Gulf of Thailand, including three fields involved in a gas sales agreement with PTT. Funan gas field was developed in 1992 and Surat gas field began production earlier this year.
Three other fields on the tract-Pakarang, Trat, and Gomin are to be developed during the next 3 years.
Jakrawan Phase 2 development will mark Unocal Thailand's first use of automation for remote wellhead platforms. Jakrawan's central processing platform will be operated by personnel from a nearby field.
Marcotte said, "More and more, automation will be introduced in our future operations to improve safety and efficiency while controlling costs."
With a 71.25% interest in the contract area, Unocal Thailand's share of second phase Jakrawan capital investment is estimated at about $300 million. Misui Oil Exploration Co. Ltd. holds a 23.75% interest in the contract area and PTT Exploration & Production Public Co. Ltd. (Pttep) 5%.
Provisions in recent amendments to gas sales contracts with PTT could increase production from Unocal Thailand operated fields to 850 MMcfd.
YADANA FIELD
Unocal Pres. John F. Imle Jr. said delineation drilling in 1993 indicated Yadana field off Myanmar is a world class gas discovery with reserves estimated by Unocal at more than 5 tcf.
"We are pleased with the outcome of gas sales discussions and look forward to proceeding with development of the Yadana project," Imle said.
Including volumes bound for domestic markets in Myanmar, Yadana production could peak at 650 MMcfd.
Unocal expects to begin booking its share of Yadana reserves in 1995 when major capital spending on the project begins.
Total and Unocal Myanmar are to develop Yadana field through a production sharing contract with MOGE.
The companies by yearend plan to form a subsidiary to build and operate a 260 mile pipeline from Yadana field across southern Myanmar to the Thai border. About 220 miles of the line will be offshore. Line construction is to begin in 1995 following an evaluation of options to select the route with the least environmental effects.
PTT is to lay and operate a gas pipeline running from the Myanmar-Thai border to Thailand's Ratchaburi province, where Yadana gas is to fuel a power plant operated by Electricity Generating Authority of Thailand (OGJ, Sept. 12, Newsletter).
"This gas sales agreement assures a long term, reliable source of fuel to help meet Thailand's increasing energy needs," Imle said. "At the same time, the project will provide significant economic and social benefits to the people of Myanmar, including the possible use of a domestic energy resource for power generation."
Operator Total owns a 52.5% interest in the Yadana project and Unocal Myanmar 47.5%. Pttep holds an option to participate with a 25.5% interest, which, if exercised, would reduce Total's share to 31.24% and Unocal Myanmar's to 28.26%.
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