PTTEP9: PTTEP, UNOCAL and MOECO, to Join in B14, 15 and 16 Project

Bangkok--Sep 1--PTTEP Prajya Phinyawat, President of PTT Exploration and Production Public Company Limited (PTTEP), announced the approval of the Board of Directors to select Unocal Thailand, Ltd. and Mitsui Oil Exploration Co., Ltd. (MOECO) , or their affiliates as partners in the B14, 15 and 16 Project, of which its acreage covers the areas B14A, 15A and 16A, in order to share exploration risk and minimize its investment expenditures. PTTEP, as the Operator, holds 80 percent of this project. UNOCAL has 16 percent while MOECO has 4 percent. UNOCAL and MOECO will be responsible for a total of US$ 60 million in exploration expenditures for the 3D seismic survey and the upcoming exploratory drilling program. This will eliminate PTTEP's expenditures in this project for at least in the next 3 years. In addition, PTTEP will also be provided with overseas investment opportunities, technical support for the operations and additional financial considerations. Block 14, 15 and 16 Project is located in the Gulf of Thailand, adjacent to several high-potential gas fields namely Bongkot, Pailin and JDA. The acreage, covering approximately 3,900 sq.km., was part of the concessions which PTTEP purchased from Texas Pacific in 1988. These concessions were identified previously as the overlapping area between Thailand and the Socialist epublic of Vietnam. The two Governments negotiated and finally reached agreement upon the Delimitation of the Maritime Boundary in the Gulf of Thailand, effective February 1998. The Ministry of Industry subsequently issued the supplementary concessions to PTTEP granting permission to start exploration activities in this area. The company then immediately began conducting the 3D seismic acquisition covering the whole area while searching for technically qualified and well-experienced partners. Prajya Phinyawat elaborated "The selection of the offers from UNOCAL and MOECO will result in various benefits to PTTEP and the country. PTTEP can now save US$ 60 million investment expenditures for at least in the next 3 years which is in accordance with governmental policy of preserving its foreign exchange reserves. This included the reimbursement of all expenses incurred since the inception of this project in February 1998. As for a technical support, the partners offer to provide their high - experienced personnel to work along with PTTEP staff which will enable the exchange of technology and development of human resources. From this successful farm-out, we also gain access to investment opportunities in Asia Pacific and other regions which is in line with the Company's vision of overseas business expansion. The partners also provide funding alternatives for PTTEP to consider as part of its financing strategies." Prajya Phinyawat added "This farm-out was conducted as a result of the company's strategy to share exploration risk and reduce expenditures. At the same time, it enables PTTEP to accelerate exploration activities and identify petroleum potential in order to plan its utilization in accordance with national energy policy. The commitment, as shown by the substantial value in the offers from both international oil companies, also demonstrate their confidence in the Thai energy industry and economy as a whole. This would help reinforcing other investors' confidence in Thailand investment opportunities." For more information please contact External Relations Dept. Tel. 537-4758 End.

• ข่าวPTT Exploration and Production
• ข่าวUnocal Thailand
• ข่าวPTTEP
• ข่าวo:eco
• ข่าวo:env