SET-listed PTT Exploration and Production Plc (PTTEP), Thailand's sole publicly listed petroleum explorer, has put off drilling of more wells in the Gulf of Thailand to early next year.
PTTEP has postponed its new drilling programmes at Bongkot and Arthit in the Gulf of Thailand (above) because production in those fields has fallen short of expectations.
President and chief executive Tevin Vonvanich said new drilling programmes at the Bongkot and Arthit fields to maintain production of gas would be postponed from the end of this year because production at the fields had fallen short of expectations.
The drilling programme is part of PTTEP's 2014 capital expenditure of US$5.51 billion.
The delay should not affect its financial performance because the programme is aimed at maintaining the production rate, not increasing capacity.
Mr Tevin said the concessions granted by the Department of Mineral Fuels for oil and gas production at both fields were scheduled to end in 2022.
Talks between the government and concessionaires are under way and expected to be concluded within the next two years. It should take five to six years to prepare additional investment before new production starts.
Drillings started at the Arthit and Bongkot fields in 1971 and production began in 1981. PTTEP is among major concessionaires together with Chevron, which is producing oil and gas from the Benjamas and Erawan fields.
PTTEP on Friday reported to the Stock Exchange of Thailand that its wholly owned PTTEP South Asia Co (PTTEP SA) and investment partners had signed a production-sharing contract with Myanma Oil and Gas Enterprise (MOGE) for onshore exploration and production rights at the MOGE 3 block in Myanmar.
Palang Sophon Offshore Pte Co and Win Precious Resources Co are its joint-venture partners with ownerships of 10% and 5% respectively, while PTTEP SA is the operator with an 85% share.
The three partners are set to invest an initial $72 million to develop four exploration wells over the next three years.
Located in the Padaukpin-Natmi area, the block covers 1,217 square kilometres in central Myanmar. The concession is part of the second round of bidding for Myanmar Onshore Blocks held last year.
PTTEP's production projects in Myanmar are Yadana, Yetagun and Zawtika, which contribute about 75,000 barrels of oil equivalent per day, equivalent to 20% of the company's production.
PTTEP closed on Friday on the SET at 167.50 baht, up one baht, in trade worth 382 million baht.