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Published on March 8, 2008

hevron Asia-Pacific Exploration and Production yesterday announced its US$3.1-billion (Bt97.85 billion) investment plan for Thailand for 2012-22 as crude oil prices set a fresh record high of nearly $106 a barrel.

The unit, part of the California-based oil and gas giant, earlier signed an agreement with the Energy Ministry to extend its concession for natural-gas exploration and production here.

Chevron Asia South managing director Joseph Geagea said the covers the development of natural-gas reserves in blocks 10-13 in the Gulf of Thailand.

Geagea said Chevron had also signed a contract with PTT to sell more natural gas. The contract stipulates that Chevron works with PTT to produce 1.24 billion cubic feet per day of natural gas from blocks 10-13 over the next four years, an increase of 500 million cfpd from 740 million cfpd last year.

Of the increase, 330 million cfpd will come from the Pla Thong 2 area and an additional 170 million cfpd from existing platforms.

The company can produce a maximum capacity of 420 million cfpd of natural gas from Pla Thong 2.

Chevron was also granted a licence last year to explore and produce four offshore petroleum blocks - G4/50, G6/50, G7/50 and G8/50 - for a six-year period from late last year to 2013.

Geagea said Chevron Asia-Pacific Exploration and Production would receive an investment budget of about $4 billion this year from its parent company, to explore and produce oil and natural gas in nine Asia-Pacific countries.

The exact breakdown of regional investment budgets will be unveiled shortly, but the overall amount should still account for about 20 per cent of Chevron's worldwide total investment.

"Chevron Asia-Pacific does not separate clearly how much money will go to each country. However, all I can tell the public is we will focus on investing money in Thailand and Australia," said Geagea, who was appointed to his position on January 1.

For Thailand, Chevron was the major producer of natural gas, crude oil and condensate last year.

Nalin Viboonchart

The Nation