NEWS Unocal producing record gas volume in Gulf of Thailand

A unit of Unocal Corp. has gauged record volumes of gas production off Thailand and aims for still greater volumes. Unocal Thailand produced a gross average of nearly 920 MMcfd from its Gulf of Thailand wells in late November and early December 1995, setting a delivery mark. The company also produced a 1 day record of 978 MMcf of gas and 34,862 bbl of condensate last Dec. 8. Unocal's Thailand production averaged 720 MMcfd for 1995, up from 704 MMcfd in 1994.

Jan. 22, 1996

2 min read

A unit of Unocal Corp. has gauged record volumes of gas production off Thailand and aims for still greater volumes.

Unocal Thailand produced a gross average of nearly 920 MMcfd from its Gulf of Thailand wells in late November and early December 1995, setting a delivery mark.

The company also produced a 1 day record of 978 MMcf of gas and 34,862 bbl of condensate last Dec. 8. Unocal's Thailand production averaged 720 MMcfd for 1995, up from 704 MMcfd in 1994.

"The new production records demonstrated our ability to sustain significantly higher production when the Petroleum Authority of Thailand's (PTT) second pipeline to Rayong comes into service," said Brian W. G. Marcotte, president of Unocal Thailand.

Unocal's production has been limited by pipeline capacity from the offshore fields. Operator Unocal Thailand owns an average 65% net interest in eight gas fields in the Gulf of Thailand.

Production increase

"We expect gas deliveries to rise to 900-950 MMcfd in the second quarter 1996 when the new pipeline goes into operation," Marcotte said.

His company plans to install four more production platforms and drill 92 more wells during the year. Gross capital spending for 1996 is projected at $258 million ($160 million net to Unocal), up 54% from 1995.

Marcotte noted that the increased production will help meet growing demand for gas by the Electrical Generating Authority of Thailand (EGAT), as well as the needs of two new gas separation plants operated by PTT and two new domestic refineries.

"We will be extremely active in 1996 to take advantage of greater gas sales opportunities over the next 3 years," Marcotte said.

During 1995 Unocal continued to reduce production costs by use of innovative development methods such as slimhole drilling. During the year, Unocal installed four production platforms and drilled 60 wells. The company currently operates more than 70 platforms in the Gulf of Thailand.

Also during 1995, the company drilled 16 successful exploration, appraisal, and delineation wells for a 70% success rate.