• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

PTTEP Studying Oman and Libya

Posted on: Monday, 3 October 2005, 12:01 CDT

By Yuthana Praiwan, Bangkok Post, Thailand

Oct. 3--PTT Exploration and Production Plc will bid for petroleum exploration and production concessions in Oman and Libya, according to president Maroot Mrigadat.

Driven by skyrocketing oil prices in the global market and the potential for them to climb further, several oil-rich nations are preparing to open new rounds of bidding for petroleum concessions to multinational oil exploration and production companies.

Mr Maroot said both Libya and Oman would begin new rounds of bidding soon with each country expected to offer five or six petroleum licences. Most of the concessions on offer will likely be from crude oil fields with large reserves of sweet crude oil, a low sulphur content oil.

Sweet crude can easily be refined into low-sulphur gasoline and diesel that meet oil standard requirements in Thailand.

"We (PTTEP) are waiting for the details of the bidding conditions. We believe that we have strong potential to win concessions in both of these countries. We have been exploring business opportunities in Libya for the past two years and already have investments in Oman," he said.

To effectively compete for the anticipated increase in concessions in the Middle East and Africa, which is expected to draw many multinational oil and gas companies, PTTEP is forming an international consortium. Details of the consortium will be announced soon.

PTTEP currently has two investments in the Middle East -- Oman and Iran -- and one in North Africa -- Algeria.

In Oman, the company was granted a concession for the onshore petroleum field Block 44. In February this year, it signed an agreement to sell natural gas from the Shams Gas Field in Block 44 to the Ministry of Oil and Gas of Oman.

Under the agreement, PTTEP Middle East Company Limited will sell 50 million standard cubic feet of natural gas per day to the ministry, starting in the first quarter of 2006.

Earlier this year, PTTEP Iran Co won exploration rights for 25 years for the Saveh Block in bidding held by the National Iranian Oil Co. The Saveh Block is adjacent to an exploratory block of China's Sinopec where oil was recently discovered.

In Algeria, PTTEP Algeria Co in partnership with PetroVietnam Investment and Development Co has petroleum concessions for Blocks 433A and 416A. PTTEP controls a 35 percent stake in the project.

Mr Maroot said that PTTEP had set an overseas investment plan which aimed to raise its production volume to 245,000 barrels of oil per day from 150,000 barrels currently.

The company has budgeted US$4.2 billion to cover overseas and local investments over the next five years.

-----

To see more of the Bangkok Post, or to subscribe to the newspaper, go to http://www.bangkokpost.com.

Copyright (c) 2005, Bangkok Post, Thailand

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

Source: Bangkok Post

More News in this Category