PTTEP wins concessional contracts for Thailand's offshore gas production

BANGKOK, December 14 (TNA) - The Thai Cabinet has approved two concessional contracts for the exploration and production of natural gas in the Gulf of Thailand, run by PTT Exploration and Production Public Company Limited (PTTEP), a subsidiary of PTT Public Company Limited (PTT) as of 2022. Government Spokesman Puttipong Punnakan told journalists that the Thai Cabinet made the decision at its mobile meeting, chaired by Thai Prime Minister General Prayut Chan-ocha, in Nong Khai Province in the Thai Northeast on December 13. The spokesman stated that the Cabinet has granted the official concession for the offshore natural gas exploration and production of the G1/61 block, or the Erawan block, to PTTEP and MP G2 (Thailand) Limited and has maintained the official concession for another offshore natural gas exploration and production of the G2/61 block, or the Bongkot block, to PTTEP. Meanwhile, Thai Energy Minister Siri Jirapongphan explained that PTTEP has been granted the official concession for the natural gas exploration and production of both the Erawan and the Bongkot blocks in the Gulf of Thailand due to its better proposals, including a cheaper price of natural gas, higher royalty and profit proportions to be shared to the Thai government and over 90 per cent proportions of jobs to be offered to Thai workers. "PTTEP offers the price of natural gas produced from both the Erawan and the Bongkot blocks at 116 baht per one million BTUs, much cheaper than other proposed deals, and agrees to share its business profit to the Thai government at 68 per cent for the Erawan block and at 70 per cent for the Bongkot block and to employ Thai workers as high as 91 per cent for the Erawan block and 99 per cent for the Bongkot block, resulting in a total state and social benefit of up to about 650 billion baht for a decade, including a cheaper power cost paid by households and the domestic business sector, starting from the year 2022", said the minister. The minister pledged that all Thai nationals who now work for the Erawan block under Chevron (Thailand) Limited, a subsidiary of US-based Chevron Corporation, will be all employed by PTTEP after the present official concession, granted to the US firm, ends in 2022-2023. (TNA)