PTTEP’s Shares Will Make a High Jump after Acquiring Both “Bongkot-Erawan” Fields!

The Ministry of Energy has made a quick announcement on December 13, 2018, that PTT Exploration and Production Public Company Limited (PTTEP) has been awarded the rights of petroleum exploration and production and as the operator for Bongkot-Erawan fields with holding interest of 100% and 60% respectively. While the other 40% in Erawan field was being held by MP G2 (Thailand) Limited, a subsidiary of Mubadala Petroleum (Thailand) Holdings Limited.

The Minister of Ministry of Energy, Dr. Siri Jirapongphan, said that the deal PTTEP offered would lower the electricity fee by 29 satang/unit. In 10 years, this deal would help saving the electricity fee more than 500 billion.

 

PTTEP states that the company, as the experienced operator of gas fields in the Gulf of Thailand, has a concrete plan in ensuring production continuity in natural gas supply according to PSCs with the minimum production volume of 700 and 800 MMSCFD in Bongkot and Erawan fields respectively.

The acquisition will increase PTTEP’s production and reserves in the long-term. In addition, continuous improvements in operational efficiency will enhance cost optimization and maintain competitiveness for sustainable growth.

 

Bongkot-Erawan fields is Thailand’s primary natural gas field in the Gulf of Thailand. Currently, PTTEP is the operator of Bongkot fields, while Chevron Group operates Erawan fields. The concession for both fields will end on 2022-2023.