Offshore staff
(Asia-Pacific) - Thailand's Energy Ministry has awarded concessions for three offshore oil exploration blocks to four companies: PTTEP (Thailand) Ltd., Chevron Pattani Ltd., Total E&P Thailand, and Thai Energy.
The operators will pay about $12 million for a six-year exploration concession on each block.
If petroleum is discovered, the companies can apply for production rights, which are valid for 20-30 years.
Companies will be charged a royalty rate of 5-15% depending on production rates, while 50% of their net profit will be paid as petroleum income tax.
Chevron Pattani, part of Chevron Corp. and formerly known as Unocal Andaman, won the concession for block G4/48, covering 504 sq km (202 sq mi).
The concession for block G12/48, covering 622 sq km (250 sq mi), has been awarded to PTTEP (Thailand), Total E&P Thailand, and Thai Energy, with PTTEP holding the major share of 44.4%.
Thai Energy is a unit of BG International Ltd.
Block G9/48, covering 252 sq km (101 sq mi), has been awarded to PTTEP (Thailand) and Chevron Pattani, with PTTEP holding an 84% interest.
The Thai government is offering a total of 82 offshore and onshore blocks spanning 440,704 sq km (176,282 sq mi) in the country's latest petroleum concession bidding round. So far, 14 parties have submitted bids for 16 blocks.
The ministry has selected Apico LLC for block L13/48 and JSX Energy (Thailand) for block 17/48, but the concessions on the two blocks are still pending Cabinet approval.
03/15/06
