Wed. Jun 12th, 2024

PTTEP Explores Extension to Myanmar Production Sharing Contracts to Boost Energy Security

Thailand’s oil and gas giant PTT Exploration and Production (PTTEP) is seeking to extend its two production-sharing contracts in Myanmar, according to its chief executive Montri Rawanchaikul.

“We are not looking for expansion, we’re just looking for securing the gas needed for Thailand and Myanmar,” Montri told Reuters on the sidelines of Abu Dhabi’s flagship energy industry conference, ADIPEC.

One of the two production-sharing contracts will end in 2028 and the other one in about 20 years, he said.

PTTEP is producing gas at the Zawtika and Yadana fields in Myanmar, which combined account for about 50 percent of Myanmar’s consumption and about 20 percent of Thailand’s.

Montri Rawanchaikul, Chief Executive Officer

Thailand is facing dwindling gas production at its Erawan field in the Gulf of Thailand, which PTTEP took over from Chevron after the latter operated it for 40 years.

The field, which in 2019 produced 1,200 million standard cubic feet per day (mmscfd) of gas, produced between 250-300 mmscfd at handover, following delays in the transfer. It reached about 400 mmscfd in mid-2023, and PTTEP aims for it to hit 800 mmscfd in output by April next year.

In Myanmar, PTTEP said it wants to extend its contracts for its two fields to maintain energy security.

Because Thailand still needs to import liquefied national gas (LNG), PTTEP has to continue exploring for new areas, said Montri.

“We have put a lot of exploration effort in Malaysia as well because we believe that we still have gas in Malaysia, and Malaysia can actually turn the gas into LNG to export,” he added.

Thailand today relies on imported LNG to meet about 40% of its demand.

PTTEP also bid for two of three blocks on offer in the Gulf of Thailand and expects to produce gas from them in two years, according to reports. Cambodian media reports say that the Thai and Cambodian governments have resumed talks on exploration and production in their overlapping claims area

PTTEP is vying to be the major exploration and eventual production player in the overlapping claims area, which is adjacent gas fields operated by PTTEP, industry sources say.

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