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BONGKOT<br />

<strong>CELEBRATING</strong><br />

20 YEARS<br />

ENERGISING THAILAND


BONGKOTGAS FIELD<br />

History<br />

July 15, 1993 marked the birth of Bongkot and a turning point in the energy scene of<br />

Thailand where most people never imaged possessing rich gas reserves.<br />

Bongkot, or lotus in Thai, arose against the backdrop of a country that once was<br />

entirely dependent on imported petroleum resources for its energy needs.<br />

The coming on-stream of Bongkot on the day ushered in a new era for partial energy<br />

suffi ciency and national economic development by opening up a string of industrial projects which<br />

captured added-values originated from the gas.<br />

Twenty years on, the Kingdom’s largest gas fi eld, lying about 600 km south of <strong>Bangkok</strong> in<br />

the Gulf of Thailand, has unwaveringly maintained its role as an energy lifeline and an enabler of<br />

progress for Thailand.<br />

Bongkot, part of the 4,231-square-kilometre Navamindra Petroleum Area, has contributed<br />

signifi cantly to the Eastern Seaboard Development Project on the Thai eastern coast which gave<br />

a dramatic impetus in industrialisation.<br />

An outstanding track record achieved by Bongkot over the past two decades provides a good<br />

reason to celebrate and commemorate Bongkot’s 20th anniversary.<br />

• Cumulative Bongkot gas production reached 3.66 trillion cubic feet (Tcf) plus 106 million<br />

barrels of condensate, translated into 700 million barrels of crude oil equivalent.<br />

• The current gas output of over 870 million cubic feet per day (MMcfd), excluding about 30,000<br />

barrels per day (b/d) of condensate produced in association with the gas, meets about 20%<br />

of Thailand’s overall daily natural gas consumption, or accounting for around 30% of the<br />

combined indigenous gas output.<br />

• Bongkot has been one of the main contributors of gas supplies which together generate 70%<br />

of electricity that Thailand consumes.<br />

• Recording a 99.5% reliability factor, meaning any disruption to gas delivery is extremely rare.<br />

• Operating in an environmentally friendly and utmost safe manner.<br />

• Valuable gaseous components extracted from raw natural gas stream from Bongkot are<br />

turned into to liquefi ed petroleum gas (LPG) and vital feedstocks for petrochemical, an<br />

industry that arose partly out of Bongkot discovery.<br />

• Contributing over 240 billion baht to the national coffers in the forms of royalty, taxes and<br />

government sharing over the 20-year span.<br />

• A major job creation with thousands of people employed directly and indirectly down the value<br />

chains stemming largely from Bongkot.<br />

Today, 15 July 2013, also represents a special moment for the country in general and PTTEP<br />

in particular as it underlines the 15th year of successful running of Bongkot by a Thai outfi t —<br />

PTTEP.<br />

The celebration will go on for another decade as the Bongkot consortium strives to sustain its<br />

key role in providing affordable, reliable and clean energy for Thailand.<br />

The success story of Bongkot dated back to May 1973 when<br />

the US oil fi rm Tenneco struck oil and gas at the wildcat 15-<br />

B-1X in block B15, lying in the Malay Basin.<br />

Although not originally perceived to be large, later<br />

drilling by the UK-based BP Petroleum and Texas Pacifi c<br />

International Inc of the US in the area confi rmed the presence<br />

of a gas bonanza.<br />

Texas Pacifi c, which took over the interests of B15 and<br />

its adjacent tracts B16 and 17 in 1978, drilled 23 wells to<br />

confi rm the rich gas deposits at the intensely faulted field<br />

which was known as the “B” structure.<br />

Realising the vast long-term benefi ts of “B” Structure<br />

gas to national development, the Thai government made<br />

a landmark decision to acquire the concession rights from<br />

Texas Pacifi c in 1988.<br />

At the same time, PTTEP, which was incorporated in<br />

June 1985, was entrusted by the government to assume<br />

the concession rights and leading the development towards<br />

tapping benefi ts thus derived.<br />

In 1990, PTTEP took three major global oil companies,<br />

namely Total of France, British Gas and Norway’s Statoil, on<br />

board as partners in the ‘’B’’ Structure which was renamed<br />

as Bongkot. Statoil withdrew its interest in Bongkot project in<br />

1998 as part of its realigned business strategy.<br />

Total was initially entrusted as the operator of Bongkot<br />

for the first fi ve years of production with an agreement to<br />

transfer the controls of operation to PTTEP by mid-1998.<br />

That agreement was triggered by the government’s<br />

foresight to use Bongkot as a platform to develop a local<br />

capability to manage, hands-on, a sophisticated capital and<br />

technological intensive industry which is all important to the<br />

kingdom.<br />

Indeed, PTTEP has become what it is — a world-class<br />

energy company with more than 40 upstream interests across<br />

12 countries, due to its fruitful engagement in Bongkot.<br />

“Bongkot is like a prestigious university which provides<br />

real-life practical lessons and rich experience for us at<br />

PTTEP”, said Nawee Anantraksakul, PTTEP senior vice<br />

president for Bongkot Asset.<br />

PTTEP’s growth may not be as impressive as it has<br />

been without an active involvement in Bongkot, he pointed<br />

out, referring especially to human resource capability.


Pragmatic approach<br />

Development of Bongkot was successful carried out over time<br />

with a pragmatic approach in four stages with a view to increase<br />

deliverability in a maximum sustainable manner.<br />

Phase I: Initial endeavour zeroed in on bringing the<br />

fi eld on stream at the rate of 150 MMcfd in July 1993 and<br />

subsequently raising the fl ow rate to 250 MMcfd.<br />

Supporting that plan was an offshore production<br />

facility which included the three well-head platforms, one<br />

production platform, one living quarter platform and a<br />

condensate tanker with 200,000-barrel capacity.<br />

Phase II: A second offshore complex was put into place<br />

and 48 additional production wells were sunk to enable<br />

Bongkot to boost gas output to 350 MMcfd in April 1996.<br />

The extended facilities consisted of fi ve well-head<br />

platforms, a riser platform and a fl are structure.<br />

Phase III: In July 1998, Bongkot began to ramp up the<br />

gas fl ow rate further to 550 MMcfd along with 22,000<br />

b/d condensate which were made possible by additional<br />

offshore facilities.<br />

They included 12 well-head platforms, a new sour<br />

process platform, additional facilities installed on the central<br />

complex, and a 400,000 barrel-capacity fl oating storage<br />

and offl oading vessel (FSO), named Pathumabaha by HRH<br />

Princess Maha Chakri Sirindhorn, to replace the old FSO.<br />

Phase IV: This development was geared towards<br />

incorporating productive areas within the concession<br />

including South Bongkot, Ton Koon and Ton Nok Yoong<br />

structures into the mainstream Bongkot production with an<br />

incremental delivery of 320 MMcfd in 2012.<br />

Being instrumental to this development phase, collectively<br />

known as Bongkot South, was a set of offshore facilities<br />

including one production platform, one living quarters<br />

platform, 13 well-head platforms and an 8-inch 82-km<br />

condensate pipeline linking Bongkot South production<br />

platform to the Pathumabaha vessel.<br />

Challenges<br />

While Bongkot’s performance has been highly impressive beyond original expectation by yielding<br />

3.66 trillion cubic feet (Tcf) and 106 million barrels of condensate to date, huge challenges remain<br />

to keep the fi eld fl owing over the next ten years.<br />

It will be more diffi cult and costly to obtain new gas which will tend to be marginal, deeper and<br />

remote away from Bongkot central facilities.<br />

That will require PTTEP and its partners to continue to work strenuously and invest heavily,<br />

to the tune of US$5 billion over the next fi ve years, to recover some 300 million barrels of oil<br />

equivalent in proved gas and condensate reserves remaining at Bongkot.<br />

The scale of future development and expenditures are as impressive as what already put into<br />

Bongkot over the past two decades but in a shorter period.<br />

Some comparisons: Between 2013 and 2017, 400 development and 40 exploration wells<br />

were planned.<br />

Over the past two decades, a total of 73 exploration and appraisal wells plus 416 development<br />

wells were bored at Bongkot with a combined investment cost soaring to $6.6 billion.<br />

“If we did not continue to work hard and integrating all kinds of technology into our endeavour,<br />

we would see a steep and fast decline in production from Bongkot,’’ Mr. Nawee pointed out.<br />

“The mission to find reserves replacement is the order of the day at PTTEP as the known<br />

deposits are drained everyday too.’’<br />

Despite the prohibitive cost investment for the next stage of development at Bongkot, PTTEP<br />

and its partners are preoccupied with searching ways and means to be more cost-effective and<br />

recovering as much as hydrocarbons in the most effi cient and environmental-friendly manner, he<br />

added.<br />

PTTEP sees the possibilities of Bongkot fl owing even after the end of concession in 2022-<br />

23, albeit at a lower rate, pending government approval for concession extension and further<br />

exploration.<br />

Eco-friendly<br />

Eco-friendliness is one the cardinal operating words at Bongkot whose environment, both in the<br />

air and water, is well protected by a series of technological-driven measures and determination.<br />

The discharge of muddy water produced in the process of drilling into the sea is zero as such<br />

liquid is re-injected back into the disposal wells at the depth of between 1,000-2,000 metres where<br />

it is safely contained.<br />

A facility has also been put in place to recover part of the gas from the offshore processing<br />

process, which would otherwise be totally burned at fl are stacks for safety reason, for good use.<br />

The fl are recovery unit allows PTTEP to capture more than half of 8-9 MMcfd of gas which<br />

was normally directed to the fl are stacks at Bongkot and turned into useful condensate. A second<br />

unit will be installed offshore in 2014 as Bongkot joint venture strives to optimise the benefi ts of the<br />

fi eld’s resource as well as further reducing emission in its atmospheric environment.<br />

Membrane technology has also been effectively applied at Bongkot South to remove carbon<br />

dioxide, mercury and hydrogen sulphide from natural gas.<br />

Through that process, natural gas becomes purer and can be cleanly burned, thus contributing<br />

to better air quality.<br />

The history of Bongkot’s environmental responsibility goes back to its day-one and to its<br />

operations being ISO 14001 Environmental Management System certifi ed in December 2001.<br />

Since then it has been continuously re-certifi ed.<br />

Bongkot is also where PTTEP’s core value — SSHE (safety, security, health and environment)<br />

- has been vigorously practiced.<br />

While operating in hazardous environment with infl ammable substance, years of<br />

monitoring show that Bongkot fi eld is one of the safest place to work.


REFLECTIONS OF<br />

20-YEAR SUCCESSFUL PRODUCTION<br />

How important is the overall Bongkot project to Thailand in terms of petroleum<br />

imports substitution and other value chains it helps to spur<br />

From the perspective of the country, Bongkot has been a vital indigenous source<br />

of energy supply, substituting petroleum imports, lessening dependence on imported<br />

energy while creating an extensive value chain for the Thai economy.<br />

Bongkot has been Thailand’s largest gas fi eld. Its current gas output of over 870<br />

million cubic feet per day (MMcfd), excluding about 30,000 barrels per day (b/d) of<br />

condensate produced in association with the gas, is equivalent to about 20% of the<br />

Kingdom’s overall gas consumption which stands at around 4,500 MMcfd.<br />

Bongkot gas also represents around 30% of the Kingdom’s combined indigenous<br />

natural gas production.<br />

Its present gas production level can fuel six generators the size of Khanom<br />

power plant (818 megawatt capacity), one of the main sources of electricity supplies<br />

for southern Thailand and which is located in Nakhon Si Thamarat.<br />

Propane and Butane extracted Bongkot gas have also been turned into LPG<br />

(liquefi ed petroleum gas) which are widely used as household, vehicular and industrial<br />

fuel, as well as raw material for petrochemical industries.<br />

Over the past two decades, Bongkot has contributed over 200 billion baht in the<br />

form of royalty and tax payment to the national coffer.<br />

Bongkot is a major job creation, directly employing about 600, 200 of them are<br />

PTTEP staff and 400 are personnel of contractors.<br />

The size of people employed indirectly by contractors who provide supporting<br />

services for the offshore gas operation, those who engage in petrochemical industries<br />

and other downstream activities are hard to quantify, but it is absolutely in great<br />

numbers.<br />

What does the Bongkot development mean to PTTEP<br />

From PTTEP’s viewpoint, our remarkable evolution over the past 28 years, from<br />

a tiny offshoot of the then Petroleum Authority of Thailand (PTT) to an outfit with<br />

world-class status, stemmed from our fruitful engagement in the Bongkot JV for more<br />

than 20 years.<br />

Here at the Bongkot, PTTEP has developed the capability, expertise, confi dence<br />

and reputation in operating a geologically complex and the substantial hydrocarbon<br />

saccumulation offshore.<br />

Bongkot is like an institution to PTTEP, a place where we have learned, handon,<br />

practical knowledge about running a giant gas fi eld professionally, effi ciently,<br />

smoothly and safely.<br />

The apprentice began in 1990 when Total was tasked to operate Bongkot on<br />

behalf of the joint venture group and in that process helped grooming key PTTEP<br />

personnel for seamlessly taking over the fi eld’s operatorship eight years later.<br />

Gas production began in 1993, and by 1998, PTTEP was ready for such a big<br />

act, amid certain scepticisms that a Thai outfi t would really<br />

be able to accomplish that<br />

task.<br />

But from that time onward, PTTEP has proved<br />

sceptics wrong and successfully been operating Bongkot<br />

whose operation has grown<br />

by leaps and bounds with<br />

daily gas fl ow leaping fi ve folds between then and now.<br />

Further we have a<br />

rewarding and mutually<br />

benefi cial relationship with our JV partners, Total E&P<br />

Thailand and BG Asia Pacifi<br />

c Pte. Ltd., strengthened<br />

over 23 years of successful collaboration.<br />

What are the lessons learned prior to and<br />

after PTTEP’s assuming the operatorship<br />

of Bongkot<br />

Most senior members of PTTEP’s<br />

current management team have passed<br />

through a good learning curve embedded<br />

in the Bongkot operatorship transfer<br />

process in one way or another.<br />

I myself engaged in fi nalizing Bongkot gas contract with PTT, fi nding joint venture<br />

partners, looking at reservoirs and mapping out fi eld development plan in the initial stage.<br />

Our previous operator, Total, has had a truly industry’s best practice, being it<br />

in safety procedure, operating standards, philosophy and culture which altogether<br />

provides an excellent basis from which PTTEP can build its own procedural platform,<br />

corporate culture and safety regimes.<br />

With profound knowledge and practical skill derived from running Bongkot,<br />

PTTEP has naturally become fully confi dent in the pursuit of new interests both at<br />

home and overseas.<br />

Our experience at Bongkot serves as a superb reference when we seek ventures<br />

abroad as the sense of confi dence in us permeates across all parties concerned –<br />

right from our own board of directors, to joint venture partners and countries in which<br />

we seek a presence.<br />

Without the capability and expertise gained from active participation in Bongkot,<br />

as well as the onshore S1 oil producing concession (Sirikit oil fi eld in Kamphaeng<br />

Phet, Pitsanulok and Sukhothai) to some extent, PTTEP will not have the leverage to<br />

grow so robustly to become what it is today.<br />

Arthit, the sibling of Bongkot, is a good showcase which the Bongkot experience<br />

was effectively applied by several members transferred from Bongkot.<br />

At Arthit, they have engaged in the entire spectrum of activities necessary<br />

in actually putting a fi eld on stream - right from exploration to development and<br />

production.<br />

Furthermore, the Bongkot experience has found good application at the Zawtika,<br />

one of the major gas deposits lying in Myanmar’s Gulf of Martaban and whose<br />

development is entirely being carried out by PTTEP.<br />

We can duly claim that our insightfulness about the Gulf of Thailand’s subsurface<br />

character is second to none, thankfully to our Bongkot experience.<br />

What is the scale of cumulative investment and works put into the Bongkot over<br />

the past two decades<br />

Undoubtedly it is indeed sizable. Including the shares of our joint venture<br />

partners, the cumulative combined capital and operating expenditures so far soared<br />

to US$6.6 billion with $3.3 billion being PTTEP’s portion.<br />

To date, a total of 73 exploration and appraisal wells plus 416 development wells<br />

were bored at Bongkot.<br />

The production has been supported by 33 well-head platforms, three processing<br />

platforms, two living quarter platforms, two fl are structures and a floating condensate<br />

storage tanker.<br />

Aggregate cumulative gas production, from North and South Bongkot fi elds, is<br />

3.66 trillion cubic feet (Tcf) and 106 million barrels of condensate, together being<br />

translated into 700 million barrels of crude oil equivalent.<br />

Since Bongkot has been in production for two decades now, does it show that<br />

the field is more prolific beyond the original expectation<br />

Given what Bongkot has already yielded so far, it is absolutely right to say that<br />

the fi eld has performed far better than what we saw back in early1990s when PTTEP<br />

took over the ownership of what was known as “B Structure” from Texas Pacifi c, the<br />

former concessionaire from the United States.<br />

At that time, we reckoned there would be 1.5 Tcf in proved gas reserves, or up to<br />

2 Tcf in a bestcase scenario, to work with.<br />

But as time went by with better knowledge, greater expertise, technological<br />

advancement, Bongkot gas fl ow rate has consistently on the way up, from 150 MMcfd<br />

to 250 MMcfd in the initial phase, and been 350 MMcfd to 550 MMcfd in intermediate<br />

stage, before reaching the current plateau level of approximately 900 MMcfd.<br />

Proving more reserves and raising gas delivery has been a big challenge due to<br />

the complexity of geological condition which requires PTTEP to penetrate many more<br />

small pockets of gas deposits in a wider spread of the offshore areas.<br />

However, We are fortunate that an average well at Bongkot yields about 10 billion<br />

cubic feet, twice as much as an average producing well lying in the upper part of the<br />

Gulf of Thailand.<br />

“Bongkot has been Thailand’s largest gas field. Its current gas output of over 870<br />

million cubic feet per day (MMcfd), excluding about 30,000 barrels per day (b/d) of<br />

condensate produced in association with the gas, is equivalent to about 20% of<br />

the Kingdom’s overall gas consumption which stands at around 4,500 MMcfd.<br />

Bongkot gas also represents around 30% of the Kingdom’s combined<br />

indigenous natural gas production.”<br />

Tevin Vongvanich, PTTEP President and CEO, speaks candidly about the evolution,<br />

vision and<br />

dedication involving Bongkot as an energy lifeline for Thailand.


However, it is much more diffi cult to recover the gas from Bongkot or elsewhere<br />

in the Gulf of Thailand when compared to, say, the productive gas fi elds offshore<br />

Myanmar where hydrocarbons deposits are more concentrating and larger in size<br />

within a more expansive reservoir.<br />

To be able to produce 600 MMcfd of gas at North Bongkot, we need 300 wells,<br />

compared to merely lowerthan 20 wells required to drain a similar fl ow rate from<br />

Yadana fi eld, Gulf of Martaban.<br />

How long will Bongkot be able to sustain the current flow rate<br />

There are about 300 million barrels of oil equivalent in proved gas and condensate<br />

reserves left at Bongkot, meaning that if we continued at the present production level,<br />

those reserves would be depleted over the next 4-5 years.<br />

However, there still are probable and possible reserves, as well as ‘resource’<br />

potential, at Bongkot and the nearby area which could potentially be recovered,<br />

pending further investment by the JV exploration and evaluation.<br />

In the possible category, the discovery certainty is at 50% and 20% for the<br />

probable.<br />

All in all, we are fairly confi dent to be able to sustain the current delivery rate of<br />

over 900 MMcfd for another ten years or until 2022-23 when the concession granted<br />

by the government ends.<br />

It is our intention to keep Bongkot on stream after 2022-23 and we believe that<br />

there are some resources lying there awaiting to be tapped for the benefi ts of our<br />

country if the Government allows the extension of the concession.<br />

What are the challenges PTTEP is facing to sustain Bongkot production<br />

With 20 years in production, Bongkot is like a middle-aged person who needs to<br />

care for himself.<br />

That is why, in the fi rst place, we have to ensure that our offshore facilities are in<br />

tip-top working condition through proper maintenance.<br />

Secondly, we have to drill more wells to replace those whose production has<br />

depleted.<br />

Thirdly, we have to move into areas where gas was found but were not<br />

commercially viable to develop because of their small deposits.<br />

That is a huge challenge to recover gas from these marginal gas accumulation in<br />

the sense that we have to find most economical methods to do so.<br />

Fourthly, we have to expand our reach to locations where no exploration wells<br />

were previously drilled but possessing discovery potential.<br />

Furthermore, we will have to drill deeper wells, which are greater than 3 kilometres<br />

for an average Bongkot well.<br />

These deep wells present much more challenging not only from greater diffi culties<br />

involving depths but there are issues about high pressure and temperature, of more<br />

than 200 degree Celsius, in the borehole, as well as prohibitive costs.<br />

What is the scale of works and investment required to enable Bongkot to remain<br />

active in production<br />

Over the next fi ve years (2013-2017), PTTEP and partners together would need<br />

to spend about $5 billion in capital and operating expenditures to sustain Bongkot<br />

production.<br />

We target to bore 40 exploration and appraisal wells in the period. We also need<br />

to drill up to 400 development wells to collect all those small gas pockets.<br />

Those numbers are signifi cant as compared to what we have undertaken in the<br />

longer span of time, of over 20 years, at Bongkot.<br />

Part of the planned capital outlay will go towards installing more well platforms<br />

to accommodate those new development wells which more diffi cult and costly to drill.<br />

It is essential for us to continue to work hard and capitalising in on the advanced<br />

technology, such as the so-called ‘’slim-hole’ drilling technique, and long-established<br />

experience and knowledge, to prolong Bongkot’s longevity in the most cost effective<br />

way possible.<br />

If you could go back in time, what should have been done regarding the Bongkot<br />

project<br />

If we knew the fi eld’s reserves could be this large and spreading out like this, we<br />

could come up with better overall development planning such as in terms of optimising<br />

platforms design and locations as well as preparing larger manpower base.<br />

Moreover, we should have been more active in sharing the Bongkot’s success<br />

story and diffi culties involved so that members of the public were better aware of the<br />

importance of an energy resource and use it effi ciently.<br />

But after all, the truth was that we did not have the luxury of such knowledge then<br />

and we did what we saw fi t.<br />

Our step-by-step approach in ramping up gas delivery smoothly over the period,<br />

from 150 MMcfd to over 900MMcfd, is a good indication that we have been on the<br />

right track.<br />

Thai Energy Ministry officials have been saying that Thailand will run out of<br />

indigenous oil and gas in the next ten years and the chance of new discoveries<br />

is slim. What is PTTEP’s view on that<br />

What they have been saying is the country’s remaining known gas reserves<br />

would dry up over that period based on the current fl ow rates and assumption of no<br />

new discoveries are made.<br />

However, I believe there are still chances for fi nding more reserves if exploration<br />

and production companies were allowed by the government and communities to do<br />

their jobs well.<br />

New petroleum concession blocks should be made available to support the<br />

hunt for possible new reserves in locations where little or no exploration has been<br />

undertaken.<br />

Of course, the chance of fi nding gas deposits the size of Bongkot in the Gulf of<br />

Thailand is probably like winning the fi rst lottery prize.<br />

However there are shining opportunities for gas reserves –in the offshore<br />

Thailand-Cambodia’s Overlapping Claims Area (OCA).<br />

The 26,000 sq km tracts share subsurface geological structure similar to<br />

productive areas on the Thai waters.<br />

Since no exploration has been undertaken, the magnitude of gas deposits is still<br />

unknown.<br />

Unfortunately, I think it may take a long while before the governments of Thailand<br />

and Cambodia can settle their differences that will allow activities to start.<br />

PTTEP has played a key role in providing hydrocarbons to meet a good part of<br />

Thailand’s energy need. Will that role continue well into the future even if all<br />

local reserves were gone How does PTTEP go about ensuring energy supplies<br />

for Thailand<br />

The mission of meeting Thailand’s energy demand entrusted to us and parent<br />

PTT Plc by the Government remains unabatedly at the forefront.<br />

That means to say our top priority is maximising local petroleum production,<br />

searching for more reserves and sustaining optimum output.<br />

As Thailand’s energy grows and indigenous hydrocarbon production looks set<br />

for dwindling, PTTEP has, at the same time, sought resources from overseas.<br />

Today, PTTEP has extended our engagement in the upstream industry in places<br />

like Australia, Africa, Middle East, North America, on top of Southeast Asia especially<br />

Myanmar.<br />

These overseas provide possible direct access to energy supplies which can<br />

either be directed to Thailand or being disposed locally there to generate income for<br />

PTTEP.<br />

We are especially keen to engage in gas development projects which have<br />

the potential to be turned into liquefi ed natural gas (LNG) which will fulfi l Thailand’s<br />

demand.<br />

But the opening of Myanmar and its energy demand ensures that we cannot<br />

signifi cantly increase our natural gas imports more than we received from Yadana and<br />

Yetagun gas fi elds in Mayanmar’s Gulf of Martabun today. Therefore, we are on the<br />

lookout virtually on almost all countries surrounding Thailand, particularly Indonesia,<br />

for supplies which are more easily accessible.<br />

Over the long term, we see shale oil and shale gas as likely additions to our<br />

portfolio. We are taking a good look at these new energy forms and if there is suitable<br />

opportunity emerging we may consider taking it on board.<br />

PTTEP has pursued a path of being a global player in resource development.<br />

How does it strike a good balance between meeting Thailand’s energy needs<br />

and playing an international role<br />

When you compare PTTEP with multi-national major oil concerns like ExxonMobil<br />

and Royal Dutch/Shell, theirs are more than 20 times the size of ours.<br />

By that comparison, ours falls into the ‘S’ (small) category when measured in<br />

terms of investment, reserves and production scales.<br />

But it is gratifying to say that our capability, dynamism and growth potential are<br />

nothing to shy about in the international standards, and we are capable of competing<br />

well with other industry players when it come to the issues of resource development.<br />

We are a national oil company which seeks overseas interests to consolidate<br />

our resource base largely to build on security of energy supplies for Thailand while<br />

providing growth for the fi rm itself.<br />

We are committed to be a major player at home and expanding an international<br />

role with the purpose of serving the best interest of Thailand.


BONGKOT BLOSSOM MILESTONES<br />

In June 1985, PTTEP set out on a signifi cant path of history that changed<br />

the face of Thailand’s petroleum exploration and production industry. The<br />

development of Bongkot fi eld has played a crucial role in that transformation.<br />

Begin here to trace the evolutionary milestones of the Kingdom’s most<br />

prolifi c and largest gas and condensate deposits throughout the past two<br />

decades.<br />

• On September 15, Her Royal<br />

Highness Princess Maha<br />

Chakri Sirindhorn presided<br />

over Bongkot production<br />

start-up.<br />

• Gas production has achieved<br />

the contractual rate of<br />

150 MMscfd.<br />

• The water injection, a method<br />

whereby muddy water<br />

produced along with natural<br />

gas was pushed back into the<br />

reservoir, has been introduced<br />

in August as part of an ecofriendly<br />

procedure.<br />

• His Majesty the King has<br />

graciously granted the name<br />

‘Navamindra Petroleum Area’<br />

to the 4,231 square-kilometer<br />

production area covering the<br />

Bongkot and Arthit Projects.<br />

• Bongkot’s 100th development<br />

well, BK-7-MRW, was<br />

successfully completed on<br />

July 22.<br />

• Bongkot South, a prolifi c<br />

extension of Bongkot, was<br />

discovered by PTTEP and its<br />

partners.<br />

1993<br />

1997<br />

2001<br />

2004<br />

1990<br />

1996<br />

1998<br />

2002 2005<br />

• PTTEP has signed a joint<br />

venture contract with TOTAL<br />

E&P Thailand and BG Asia<br />

Pacifi c Pte. Limited to jointly<br />

develop Bongkot fi eld.<br />

• Exploration and development<br />

began in earnest with the<br />

construction of offshore<br />

production facilities started.<br />

• Bongkot gas output ramped<br />

up to 350 MMscfd. under an<br />

upgraded contractual volume.<br />

• An advanced drilling<br />

technology, known as Slim<br />

Hole, debuted in May.<br />

• The fi rst well in Thailand<br />

drilled horizontally was sunk at<br />

Bongkot at well BK-4-M1.<br />

• PTTEP assumed the<br />

operatorship of Bongkot,<br />

becoming Thailand’s first outfit<br />

in history to play such a role.<br />

• Bongkot’s gas production has<br />

increased further to 550 MMcfd<br />

together with 22,000 BPD in<br />

condensate output as the third<br />

production train on stream.<br />

• “Pathumabaha,” a new<br />

condensate fl oating storage<br />

and offl oading vessel, or FSO2,<br />

with 400,000 bbls holding<br />

capacity, was deployed.<br />

• Successful drilling of Tonsak- 6<br />

exploration well, bored to the<br />

total depth of 2,770 metres,<br />

has enhanced Bongkot’s gas<br />

reserves by 600 Bcf.<br />

• Thailand’s longest<br />

well, BK-7-GR, was<br />

drilled horizontally<br />

up to 90* angle at<br />

Bongkot to a total<br />

depth of 5.2 km. The<br />

well was expected to<br />

yield 30 Bcf of gas<br />

delivery.<br />

• A production<br />

platform that<br />

separated hydrogen<br />

sulphide (H2S) from<br />

raw gas stream has<br />

been installed.


• A 3-dimensional seismic<br />

campaign was launched at<br />

Bongkot South in March.<br />

• Fabrication of Bongkot South’s<br />

central processing platform<br />

began.<br />

• Condensate production from<br />

Arthit, the other major field<br />

operated by PTTEP in the same<br />

general area, was successfully<br />

integrated with Bongkot’s<br />

facilities with Arthit gas liquid<br />

delivered to the FSO2.<br />

• Cumulative gas production from<br />

Bongkot has reached a<br />

landmark level of 3 Tcf.<br />

• Princess Sirindhorn inaugurated Bongkot<br />

South on September 24.<br />

• Bongkot’s cumulative condensate production<br />

has touched 100 million bbls.<br />

• First trial gas delivery from Bongkot South to<br />

PTT started on February 4 with contractual<br />

volumes being met on June 16.<br />

• Bongkot Project has won bronze award in<br />

2012 Operational Excellence Best Practice<br />

from PTT.<br />

2006<br />

2008<br />

2010<br />

2012<br />

2007<br />

2009<br />

2011<br />

2013<br />

• The coverage of Bongkot’s<br />

production area has increased<br />

to 3,200 sq km.<br />

• PTTEP and partners concluded<br />

a long-term accord to sell<br />

natural gas from Bongkot<br />

South to PTT Plc.<br />

• Installation of additional living<br />

quarters and central processing<br />

platforms at Bongkot were<br />

completed on July 19 and<br />

August 12, respectively.<br />

• Pathumabaha FSO celebrated<br />

its 10 th anniversary of service<br />

with no accident.<br />

Editor Simon K Project Manager Sangsoam K Text Supplied Editorial Design Arthit K Photographs Supplied<br />

Display Advertising and Supplement Sales SVP Voravadhana J Tel +66 (0) 2616 4000 Email Production Allied Printers<br />

The <strong>Bangkok</strong> <strong>Post</strong> is edited by Pattnapong Chantranontwong for The <strong>Post</strong> Publishing Public Company Limited, Printer, Publisher and Owner Offi ce <strong>Bangkok</strong> <strong>Post</strong> Building, 136 Na Ranong Road, Klong Toey, <strong>Bangkok</strong> 10110, Thailand • www.bangkokpost.com 0713


VALUE CHAINS FROM BONGKOT IN<br />

NUMBERS<br />

Natural Gas fi eld<br />

1 st operated by Thai Company.<br />

1,000,000,000 Up to scfd<br />

of natural gas are produced.<br />

Or 20% of Thai natural gas<br />

demand is produced each day.<br />

600 Over jobs<br />

are directly supported.<br />

1,000 Over jobs<br />

are indirectly supported.<br />

6 power plants, as big as 800 MW, are fueled up<br />

daily by natural gas provided by Bongkot project.<br />

200,000,000,000 Over baht<br />

has been injected into government’s<br />

circulation via royalty and tax<br />

payment, since the<br />

implementation of<br />

Bongkot project.<br />

5.2 kilometers long of BK-7-GR,<br />

which is the longest gas well in Thailand.<br />

100% of produced water<br />

re-inject back into the disposal<br />

well to eliminate pollution.<br />

14001<br />

ISO<br />

has been certifi ed by<br />

the International Environment<br />

Management System and<br />

recertifi ed by AJA<br />

Registrars Ltd.,<br />

since 2001.

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