PTTEP success in Oman has govt backing foreign oil ventures
The government is keen to promote oil and natural-gas exploration and production abroad, encouraged by the success of PTT Exploration and Production (PTTEP), which started production at its wholly owned plant for natural gas and condensate from the Shams field in Oman last Saturday.
Energy Minister Piyasvasti Amranand said the success would pave the way for joint investment in third countries. "Due to the complicated geological structure, this field has been ignored by large-scale firms and paved the way for PTTEP's participation. The venture is successful, and this boosts the relationship between Thailand and Oman," Piyasvasti said. He added that PTTEP had recently joined hands with Oman Oil to invest in other countries, such as Burma. PTTEP also plans to explore many other countries in the Middle East. Piyasvasti, who was in Oman last weekend to witness the operation's start-up, also said the ministry was exploiting the improved relationship in securing more energy and pushing PTTEP and other Thai operators towards joint investment in the Middle East through all diplomatic and other ties. After Oman, Piyasvasti was scheduled to visit Qatar and the United Arab Emirates, in order to discuss future cooperation in oil and natural-gas trade and investment for Thailand's energy security. Thailand imports 280,000 barrels per day from the UAE, followed by 120,000bpd each from Oman and Saudi Arabia. Initially, the Shams field will produce 35 million standard cubic feet a day of natural gas and 4,000bpd of condensate, said PTTEP. The natural-gas output will be increased to 50 million cubic feet in the near future and eventually to 100 million. Natural gas from the Shams field will be sold to Oman's Oil and Gas Ministry, while condensate will be supplied to PTT in Thailand. The Shams field is part of the "Oman 44 projects", located in the Suneinah Desert about 300 kilometres west of the capital Muscat. PTTEP is the sole operator of the Oman 44 projects. PTTEP president Maroot Mrigadat said the project, awarded to the company in 2002, was a major milestone for the company. An investment of US$145 million (Bt5.19 billion) so far in the project has given returns of 15 per cent. It is developing Field 58 in the southwest of Oman, with a budget of $20 million for the first three years of exploration. "Success in Shams marks a historic moment in Thailand's energy development. We can explore petroleum fields abroad on our own ability and bring revenues back to the country," Marut said. Meanwhile, Dow Jones Newswires yesterday reported PTTEP was issuing Bt3.5 billion worth of three-year bonds. The coupon was set at 4.88 per cent. Thai corporate bonds are usually sold at par. Tris Rating has assigned the bonds an AAA rating.
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