Bangkok--Dec 29--PTT
PTT Exploration and Production Public Company Limited or PTTEP has received Cabinet approval to hold 20% equity in Block EU-1 in Phu Horm Project. The project has been very successful in the past 2 years of exploration.
Phu Horm Project covers the area of Block E-5 North and Block EU-1 located in Udon Thani and Khon Kaen Provinces, an area of 231.6 square kilometers. It is situated approximately 45 kilometers to the north of Nam Phong field in Khon Kaen Province. The last three delineation wells, Phu Horm-3, Phu Horm-4 and Phu Horm-5 discovered commercial amount of reserves with high gas flow rate.
On December 28, 2004, the Cabinet approved the Energy Ministry’s proposal for PTTEP to become co-concessionaire of the project.
Other equity holders in the project are Amerada Hess (Thailand) Limited as the Operator with 35%, Apico LLC with 35%, and ExxonMobil Exploration and Production Khorat Inc. with 10% shares.
PTTEP President Mr. Maroot Mrigadat stressed the PTTEP is pleased to be part of the project. “Gas reserves estimated from preliminary data range between 300 — 700 billion cubic feet. Phu Horm will play a role in contributing to the increasing energy demand of the country. Participating in the Phu Horm Project will also add gas reserves and production to PTTEP”s portfolio.”, he said.
PTTEP expects that the production will come on stream in 2006, with potential production rate of 85 - 100 million cubic feet per day. Negotiation for gas sale to PTT is well in progress.
“At this rate of gas flow, Phu Horm Project has a very good potential to become one of the important power sources for the production of electricity in the Northeastern part of Thailand. It is likely to become an important onshore natural gas resource in the future”, said Mr. Maroot.
PTTEP envisages an investment of US$ 36 million in the first two years of investment in the project which is operated by Amerada Hess (Thailand) Limited.
For more information, please contact
Sidhichai Jayant/Tongchit Wattanametee
External Relations Department
Tel. +66 (02) 537 4000 End.