PTTEP to bid for new Bongkot prolongation licence

Mr Somporn speaks during yesterday’s media briefing. He says PTTEP believes it can win a Bongkot auction.

PTT Exploration and Production Plc (PTTEP), a usually SET-listed upstream petroleum firm, says it is prepared to join a auction for a Bongkot petroleum retard to continue a prolongation there.

Energy policymakers have motionless to open a behest for licences to dual gas fields: Bongkot, operated by PTTEP, and Erawan, operated by Chevron.

The licences are due to end gradually in 2022 and 2023.

“With partners in a Bongkot production, we are prepared to take partial in a new bidding,” pronounced Somporn Vongvuthipornchai, PTTEP’s boss and arch executive.

The auction will open in a second half of this year during a beginning after a revised chronicle of a Petroleum Act is upheld by a National Legislative Assembly. The Energy Ministry has pronounced a winners would be announced publicly by mid-2017.

Mr Somporn pronounced PTTEP believed it could win a auction since a supervision would rather keep a petroleum operation in-house.

“Gas outlay of 850 million customary cubic feet per day [MMSCFD] will disappear from a country’s pool of gas in about 3 years if a new winning bidder gets it,” he said.

Mr Somporn declined to contend either PTTEP would bid for a 1,240-MMSCFD Erawan field.

Energy Minister Anantaporn Kanjanarat gave a curtsy to PTT appropriation Chevron’s interest in Thai gas resources. US-based Chevron is deliberation offered resources in Thailand as partial of a devise to unpack investments in Asia.

Mr Somporn pronounced PTTEP was prepared to approve with new agreement terms, as a aged agreement was finished dual decades ago.

“But a supervision will have to cruise that indication it wants to use: a production-sharing agreement [PSC] complement or concessions,” he said. “Either indication will impact a costs slightly.”

Under a benefaction model, a user pays a state a bound kingship fee. Under a PSC system, a user pays by both kingship fees and petroleum products.

Energy policymakers have been demure to adopt a PSC complement since oil prices can vacillate and can be unsound to cover dear petroleum storage and maintenance. But activists insist a PSC indication will beget aloft returns.

Petroleum prolongation from Bongkot accounts for 20% of PTTEP’s sum output, some 330,000 barrels of oil homogeneous per day.

PTTEP is seeking new resources in Asean and a Pacific, though no deals have been finalised.

PTTEP shares sealed yesterday on a Stock Exchange of Thailand during 77 baht, down 75 satang, in complicated trade value 1.63 billion baht.

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