POGO GROUP AGREES TO GAS SALES FROM BLOCK OFF THAILAND

Pogo Producing Co., Houston, and partners last week signed a 30-year contract to supply natural gas to the Petroleum Authority of Thailand (PTT). The gas will come from the group's 70,000 acre Tantawan area of Block B8/32 in the Gulf of Thailand. The Thai Department of Mineral Resources earlier this year granted a production license covering the Tantawan structure to the Pogo combine. Pogo expects production start-up during fourth quarter 1996. That target hinges on completion of a gas

Nov. 13, 1995

2 min read

Pogo Producing Co., Houston, and partners last week signed a 30-year contract to supply natural gas to the Petroleum Authority of Thailand (PTT).

The gas will come from the group's 70,000 acre Tantawan area of Block B8/32 in the Gulf of Thailand. The Thai Department of Mineral Resources earlier this year granted a production license covering the Tantawan structure to the Pogo combine.

Pogo expects production start-up during fourth quarter 1996. That target hinges on completion of a gas pipeline under construction by PTT and the pace of field development.

First production is to come from two platforms that can accommodate 12 wells each. Platforms will be added as required.

VOLUMES, PRICES

Minimum contract volumes during the first year will be 75 MMcfd, rising in the second year to 85 MMcfd. Agreement on reserves volume is to be negotiated when the minimum contract volume exceeds 125 MMcfd.

Pogo said the group hopes drilling will develop delivery capacity well in excess of contract minimums as wells and platforms are added in the Tantawan area.

Production facilities will be designed to accommodate as much as 300 MMcfd of gas and 50,000 b/d of crude oil and condensate.

Base natural gas prices are to start at $1.90/MMBTU with at least three price adjustments expected before start of production. Pogo said Tantawan crude oil and condensate will be sold in Thailand at "competitive world prices."

The gas sales contract dedicates 300 bcf of Tantawan gas to PTT. Field reserves may be redetermined about every 2 years under the contract as Tantawan structure delineation and development proceeds. Parts of Block B8/32 outside of Tantawan may be included under the contract by agreement between PTT and the Pogo group.

Tantawan area owers are Thailand corporations that are, in turn, owned by Pogo and Rutherford-Moran Oil Corp. 46.3% each and Sophonpanich Co. Ltd. 7.4%.