Operators mark progress on Thai gas projects

Despite a regional economic downturn, petroleum firms operating off Thailand are continuing to boost gas production, with encouragement from the government.

Pogo Producing Co., Houston, has approved a $22 million project to build and install a fifth platform in Tantawan gas field on Block B8/32 in the Gulf of Thailand. And Triton Energy Corp., Dallas, claimed an "overwhelming" interest from international companies in its share in gas-prone Block A-18, in the South China Sea off Thailand.

Meanwhile, Total is poised to boost gas production from Bongkot field, Thailand's largest gas producer, by 57% at the end of June. And Thailand's natural gas industry looks set to expand following a government directive to the state power utility to switch its existing and planned oil-fired power stations to gas.

Tantawan platform

Installation of Tantawan E platform is in line with a field development plan to sustain gas delivery to the Petroleum Authority of Thailand (PTT) under a long-term supply contract. The new structure will be a four-legged steel platform with six well slots.

Development drilling from the platform is scheduled to begin in January 1999, with initial production anticipated in April 1999, according to Rutherford-Moran Oil Corp. (RMOC), which has a 46.34% interest in the concession.

Tantawan has been in production for more than 1 year and currently produces 100 MMcfd of gas and 7,200 b/d of oil and condensate. Forty-eight wells have been drilled there since the discovery well in 1992. Forty wells, all in the southern portion of the field, are deemed viable producers, according to RMOC Pres. Patrick Rutherford.

A floating production, storage, and off-loading vessel processes natural gas and crude oil and stores crude for export by shuttle tanker.

Triton assets

Thomas Finck, chairman and CEO of Triton, said he could not reveal how many companies had shown interest in its Block A-18 stake: "But I would say it is probably many more than you even imagined."

Unocal Corp. and Exxon Corp. are believed to be among potential bidders for Triton's stake in the Malaysia-Thailand Joint Development Area (JDA).

Triton has a 50% interest in A-18-one of three tracts in the 7,250 sq-km JDA-with Malaysian state firm Petronas Carigali Sdn. Bhd. holding 50%. The partners have found eight gas fields on Block A-18, with combined estimated proven reserves of 1.4 tcf.

Meanwhile, Finck said Triton would not participate in Thailand's latest bidding round (see related story, this page). Nor will it take part in the 400-km Trans-Thailand-Malaysia gas transmission line and an 850 MMcfd gas separation facility, planned in connection with JDA field developments (OGJ, May 25, 1998, p. 14).

The JDA gas buyers-PTT and Petronas-will invest in the infrastructure projects.

Bongkot hike

Total Exploration & Production Thailand officials said completion of a third phase of development will raise Bongkot's gas production to 550 MMcfd from 350 MMcfd. Drilling recently began from one of the two new wellhead platforms installed in the field, which lies 600 km south of Bangkok in the Gulf of Thailand. These two platforms play a key role in increasing gas production from the field.

Meanwhile, Total reported the exploration campaign to prove additional gas and oil reserves in the southern and northern parts of Bongkot is well under way. So far, four wells have been drilled-two each in the North and South Bongkot areas.

Total aims to confirm the range of reserves for the anticipated fourth-phase development of South Bongkot and to prove additional reserves in North Bongkot, which would be produced through existing facilities.

Gas directive

The new gas directive was declared by the Chuan Leekpai administration to Electricity Generating Authority of Thailand (EGAT), which currently generates 40-50% of its electricity from natural gas. The move would reduce EGAT's dependence on fuel oil, which accounts for nearly 20% of its total electrical output.

The new policy is intended to ensure a sufficient market for the growing gas supplies coming from domestic gas fields and neighboring areas, such as Myanmar and the JDA.

Demand for natural gas in the industrial sectors has been slowed by the country's economic meltdown and is expected to remain in check for the next few years until the economy recovers. In this case, EGAT would be obliged to absorb the gas volumes which would otherwise be taken by local industries.

Thailand also wants to minimize its heavy dependence on imported oil, which has been a major source of foreign exchange drainage that the Thai government is trying to stop.

At present, EGAT is using about 70% of the 1.6 bcfd of gas produced in a number of Gulf of Thailand fields. The utility's current installed generating capacity is almost 17,000 MW, of which almost half is gas-fired.

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