Chevron wins license for gas production in the Gulf of Thailand

Thailand’s government has granted Chevron, the U.S.-based global energy corporation, a license for petroleum exploration and production in the Gulf of Thailand as part of the Kingdom’s efforts to increase production and use of natural gas in its energy supplies.

Chevron was the only firm, aside from PTT Exploration and Production, Thailand’s own partially privatized state energy company, that was able to secure a license in this round of bidding to search for natural gas in the gulf. The company is gearing up to conduct a seismic survey to see if its block has potential for petroleum production, said Chevron (Thailand) President Chatit Huayhongtong.

Although supplies of natural gas in the Gulf of Thailand are declining, it still possesses commercially viable stores of the substance and several energy firms from around the world were interested in acquiring licenses for exploration.

Chevron has had extensive track record of working in the Kingdom. It was the first foreign energy producer to win petroleum concessions from the Thai government in 1962. In 1981, Chevron made the first hydrocarbon discovery in the Gulf of Thailand.

“We intend to maximize the potential of existing energy deposits while unlocking the potential of new ones by extending production period at the Pailin field in the Gulf of Thailand, reconsidering to develop the Ubon project, and undertaking petroleum development in the Thailand–Cambodia overlapping claims area,” Chatit said.

Thailand has had agreements with neighboring countries Cambodia and Malaysia that designate certain parts of the gulf as co-development zones, where resources and returns will be shared.

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