The Department of Energy (DMF) announced the winning bidders of the Thailand Petroleum Bidding Round 2018 for G1/61 and G2/61 blocks, on 13 December 2018. The operatorships of the Erawan field (G1/61) and Bongkot field (G2/61) have been awarded to PTTEP, with holding interests of 60% and 100%, respectively. PTTEP will be partnering with MP G2 (Thailand) Limited, a subsidiary of Mubadala Petroleum, for the G1/61 block. The 10 years Production Sharing Contracts (PSCs) for these two blocks are expected to be signed in February 2019.   The new PSCs will take effect upon the expiry of the current concessions. The current production concessions for Erawan and Bongkot are due to expire in 2022 and 2023, respectively.   Earlier on 25 September 2018, the DMF received two joint bids from PTTEP and its partner Mubadala, to compete with Chevron and partner Mitsui for G1/61 area. PTTEP submitted a single bid for G2/61 area to compete with a joint bid by Chevron and Mitsui.  The winners will be required to invest at least USD 4 billion and to produce at least 800 MMcfg/d over the first ten years (2022-2032), according to the new contract. As of end of 2017, the combined production from both fields is approximately 2.1 Bscfg and 75 Mbc, which is equivalent to 70% of the total production in the country.  Background Information    The Erawan and Bongkot fields auction was officially launched by DMF on 24 April 2018. The auction was originally planned for November 2014. However, it was delayed due to amendment of the Petroleum Act. The revised petroleum law gives more flexibility to the investors, adding PSCs and service contracts to the existing concessions.   Previously, the Erawan field in was licensed under Contract 1 (Blocks B12 and B13) and Bongkot field was covered by the B15, B16 and B17 concessions. Both concessions have been renewed once in 2007, and according to Petroleum Act 1969, the concession cannot be renewed for a second time.  Chevron received 10 years extension of production period for the Erawan field on 29 October 2007 till April 2022. PTTEP, on the other hand, received approval the concession blocks B15, B16 and B17 (Bongkot field) 10 yearsâ extension of production period on 16 October 2007 till April 2022 (for B15) and March 2023 (B16 & B17).   The Erawan Complex, located in the Pattani Trough, Gulf of Thailand, has been producing at 1,270 MMscfg/d and 47,400 bc/d in October 2018. The field has remaining 2P reserves estimated at approximately 880 Bcf of gas with 20 MMbbl of condensate, which is equivalent to 22% of the field total reserves. The field is currently operated by Chevron with 80% interest, partnering with MOECO (20%).  The Bongkot field, located in the north Malay Basin, is operated by PTTEP with 66.67% interest. The other partner is Total with 33.33% interest.  The Bongkot complex, including the main Bongkot field and the Greater Bongkot South development, produced approximately 980 MMscfg/d and 27,200 bc/d in October 2018. Remaining reserves are estimated at approximately 1.8 Tcf of gas and 27 MMbbl of condensate, representing approximately 25% of the total field reserves.
Thailand, G2/61 (Bongkot)