PTT sets sights on Natuna gas field: Report

Thai state oil and gas firm PTT, plans to urge the Vietnamese and Malaysian governments to join in developing the Natuna D Alpha gas field in Indonesia, Bangkok Post reported on Thursday quoting PTT senior executive vice-president Chitrapongse Kwangsukstith.

"We see that both countries' governments have shown interest in this field, so it may be a chance to do business together," he said yesterday.

The Indonesian government is reviewing new licence terms for the Natuna field, a natural gas production site in the South China Sea.

The existing licence, held by Exxon Mobil, will expire early next year. Exxon is bidding for an extension.

PTT tried to buy the licence from Exxon 10 years ago but withdrew its offer citing high operating costs.

A 2,000-kilometre pipeline from Natuna would link with PTT's pipeline grid in the Gulf of Thailand . The field contains a massive volume of natural gas, but the refining costs are high. Carbon dioxide levels are 70%, which is above the levels of most fields. However, due to high crude prices, the field would likely become viable if the company obtains a partner.

He said that once the installation is finished, gas supply from Natuna would need to be flowing into the grid at around three billion cubic feet per day.

He said that the partners would need to acquire one-third of the stake, as well as a gas-flow share for each stakeholder.

Gas consumption is projected to double by 2011 from the current level of 3,200 mcfd or the equivalent of 500,000 barrels of oil per day. The main consumers in Thailand are electricity generators and industrial plants.

Apart from Natuna, PTT has been negotiating with Burma for A1 and A3 fields to secure more supply.(*)