26 Jul 2012
Towngas acquired an onshore Oil Exploration and Production Project in Thailand
Hong Kong and China Gas is pleased to announce that its wholly-owned subsidiary company ECO Environmental Investments Limited (ECO) has acquired a 60% effective stake in an onshore oil exploration and production project in Thailand Blocks L33/43 and L44/43 for a consideration of US$170 million. This is a brown field onshore oil exploration and production project, i.e., the project has already gone through a substantial exploration stage, and is now producing oil.
The Blocks L33/43 and L44/43 is situated at about 250 km north of Bangkok, with 10 million barrels of 1P reserve and 30 million barrels of 2P reserve. The Blocks are shallow oil field of around 800 to 1200 meters deep. The reserve levels have been assessed and confirmed by international professional petroleum technical expert consultants. The operator has a concession of 20-year production period from July 2012. Presently, oil production is steady at around 3,000 Bbl/day.
The off-take from the Blocks, which is of light and low sulphur crude oil, have been contracted with PTT at formula driven prices linked to the price of Singapore Product Oil. The existing experienced exploration and production team is retained and expert consultants would be recruited for the project.