Chevron Signs Gas Sales Agreement With PTT

Integrated energy giant Chevron’s Thai subsidiary Chevron Thailand Exploration and Production and its co-concessionaires have signed a gas sales agreement with Thai integrated energy firm PTT for blocks 10 to 13 in the Gulf of Thailand.

The agreement is expected to boost natural gas supplies from these blocks by 500 million cubic feet of natural gas per day (mcf/d) or from a daily contract quantity of 740mcf/d in 2007 to 1,240mcf/d from 2012.

The offshore blocks represent nearly 50% of Chevron’s current operating areas in the Pattani Basin and include other operating areas in the Gulf of Thailand. Chevron has working interests in the operating areas within these blocks ranging from 60% to 80%.

Chevron said that the main source of this increased supply is a planned 330mcf/d expansion of the Platong field, including a new central processing platform, as well as an additional 170mcf/d from existing platforms.

Steve Green, managing director and CEO of Chevron Asia South, said: “Natural gas is one of the fastest growing segments of Chevron’s portfolio. Chevron’s natural gas production is currently used to produce approximately one third of Thailand’s total electricity demand and this is expected to increase to 40% once peak production is achieved from 2012.”