Chevron to begin multi-billion dollar gas project in Thailand

Chevron Corp. and its partners will construct the Platong Gas II natural gas project in the Gulf of Thailand.

Offshore staff

BANGKOK, Thailand -- Chevron Corp. and its partners will construct the Platong Gas II natural gas project in the Gulf of Thailand. Total development cost of the field is $3.1 billion with startup scheduled for 1Q 2011.

The Platong Gas II development, located in shallow water, 120 mi (200 km) offshore, is designed to add 420 MMcf/d of natural gas processing capacity. Chevron is operator and holds a 69.8% participating interest, while Mitsui Oil Exploration Co. Ltd. has 27.4% and PTT Exploration and Production Public Co. Ltd. holds 2.8%.

"The Asia-Pacific region is poised to become the world's most significant oil and gas consumer, with demand forecasted to grow by about 90% by 2030," says Jim Blackwell, president of Chevron Asia-Pacific Exploration and Production Co. "Chevron is well positioned with a robust queue of major projects across the region to help satisfy future demand.

"The Platong Gas II project alone has the potential to satisfy 14% of the natural gas used for power generation in the Kingdom. Platong Gas II is a milestone that builds on the 45-year relationship between Chevron and the Kingdom of Thailand," says Blackwell.

Chevron recently signed an agreement with the Ministry of Energy of Thailand to increase its daily contract quantity of natural gas by 500 MMcf to 1.2 bcf by 2012 from company-operated offshore blocks 10, 11, 12, and 13. Platong Gas II is expected to be the major source of this increase in production. In October 2007, the company received 10-year lease extensions until 2022 for blocks 10 through 13. Chevron has ownership interests in these blocks ranging from 60% to 80%.

03/10/2008

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