award of new licence?

Article from the Bangkok Post 26/2 (emphasis added)...

http://www.bangkokpost.com/business/economics/33553/world-prices-helping-local-exploration

World prices helping local exploration

* Published: 26/02/2010 at 12:00 AM
* Newspaper section: Business

Crude oil production in Thailand is expected to rise 20% to 300,000 barrels per day (bpd) next year, helped by more government promotion of exploration and production over the past few years, according to Energy Minister Wannarat Channukul.

The rise in oil prices had also encouraged companies across the globe to look for opportunities in Thailand, he added.

Local crude production last year stood at 240,000 bpd, up from 220,000 in 2008. Of the 2009 total, 156,000 bpd were crude oil and the rest was condensate.

The government has been promoting exploration by offering new licences over the past few years in order to reduce the expense of imported oil.

Local crude production is still far lower than domestic demand of 700,000 bpd. Oil demand is expected to decline gradually as the government tries to encourage more use of natural gas.

Natural gas demand is expected to rise to more than 4,000 million cubic feet per day next year from 3,600 mmscfd last year.

New petroleum production activities by Pearl Oil Co, PTT Exploration and Production, Hess (Thailand) Co and Chevron will play a significant role in lifting local crude output.

The government has just awarded four licences for onshore petroleum blocks to four companies that have been exploring their potential since 2007. Two more companies are awaiting licences and Mr Wannarat said they would be granted soon.

The four licences have been granted to Pearl Oil (Resources), Carnarvon Petroleum, JSX Energy Co and Shaanxi Yanchang Petroleum Co. They will have three years for exploration and if they discover potential reserves, they will have priority for production licences.

The four companies are expected to invest a total of US$47 million or 1.5 billion baht in their exploration ventures.

Fee payments from E&P companies last year rose 11.3% to 138.1 billion baht.

Proven reserves of natural gas are currently estimated at 12 trillion cubic feet, condensate at 270 million barrels and crude oil at 182 million barrels.

About the author
Writer: Yuthana Praiwan
Position: Business Reporter