Chevron Thailand’s gas game-changer: Boosting domestic supply and breaking free from costly imports
Chevron Thailand Exploration and Production aims to boost domestic gas supply to reduce the Thai government’s reliance on costly liquefied natural gas (LNG) imports, with plans to increase petroleum production in the Gulf of Thailand.
The US-based company was granted a licence to explore and produce petroleum at Block G2/65, an area of 15,030 square kilometres in the gulf, under a production-sharing contract signed with the Department of Mineral Fuels. Chevron intends to produce natural gas at Block G2/65 and also expects to find crude oil at the site, which is near the Pailin gas block where the company is currently operating. Chatit Huayhongtong, president of Chevron Thailand, said…
“Petroleum from this block will strengthen Thailand’s energy security in the future.”
The firm is preparing to conduct a seismic survey to study the geological structure in detail to determine the feasibility of petroleum discovery. Chevron plans to drill two exploration wells within six years and, if exploration confirms good prospects, further investments will be made to develop the wells into production wells.
In addition, Chevron is planning to make additional investments in the Pailin block and is in the process of asking authorities to extend the petroleum production period for another 10 years. The production licence at Pailin, which includes the Pailin and North Pailin fields, expires in 2028. Chatit added…
“Our investment plans will not only be good for Thailand in terms of tax and royalty collection but will also help the country deal with expensive energy prices.”
Chevron also supports Thailand and Cambodia holding talks over an overlapping claim area (OCA) between the two countries to jointly develop a new petroleum site in the upper part of the Gulf of Thailand. Chatit suggested that the next government should push ahead with the OCA talks, as Chevron is ready to participate in petroleum exploration if the negotiations are successful.
