Thai newcomer joins forces with Chinese giant
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5-way partnership to develop site in Nakhon Ratchasima
Thai Petroplus (TPP), a new oil and gas exploration and production company owned by an expert in cooperatives, has joined with four partners, including BGP Inc, a subsidiary of China National Petrolem Corporation (CNPC), and Greatwall Drilling to enter the 21st round of a petroleum concession opened by the Department of Mineral Fuels.
A site is expected to be developed in Nakhon Ratchasima province, which is expected to yield 30,000 barrels of oil equivalent per day.
Besides CNPC and Greatwall Drilling, the other two partners of TPP are US-based Schlumberger Overseas SA and Gen Labs (Thailand).
The Chinese petroleum giant’s cooperation with a Thai company reflects a move by China to seek new oil and gas resources in this country.
TPP owner and chairman Supachai Srisupaaksorn is a businessman who runs the Klongjan Cooperative Union and is well known in the cooperative sector. He has diversified into the exploration and production business, in which he does not have any experience. TPP managing director Tranedwud Nhariptpan is a cousin of Energy Minister Pichai Naripthaphan.
Supachai said he had bought 1,500 rai (240 hectares) in Pak Thong Chai district in Nakhon Ratchasima province, called L37 block. The site is believed to have plenty of oil and gas resources with production capacity of 30,000boe/d and can last for 90 years.
He started to study opportunities in the exploration and production industry and decided to enter the 21st concession round of petroleum.
As Supachai does not have any experience in this industry, he approached Tranedwud to help him.
He said he knew China was aggressively seeking oil and gas worldwide to secure these sources of conventional energy.
“Tranedwud has good connections in China. I have known him for years and believe that he can help me to do this business,” he said.
Supachai said he was not concerned about political connections and he just does his business. Regarding cooperation with a global giant like CNPC, he said TPP was confident that the competitive cost of that corporation’s technology and manpower would be the strengths of the new company.
TPP has registered capital of Bt500 million. Once the company can prove the oil and gas resource in Pak Thong Chai, it will increase the registered capital, as the production work would need investment of many billions of baht. Its Chinese partners could become investors in the projects.
The company is likely to sell half of its oil production to the PTT Group, Thailand’s national energy firm, and the rest to China, but the natural gas will be reserved for domestic consumption only.
He said more Chinese exploration and production companies would enter the Thai petroleum industry, such as in the refining business. This is the trend.
Tranedwud said his close relationship with the energy minister was not of concern as TPP was founded in August last year, before Pichai became the minister. Tranedwud was approached for this job because of his experience and connections in China.
Although Tranedwud is not concerned about the conflict-of-interest issue, he admits that he changed the spelling of his surname, both in Thai and English, to differentiate it from that of Pichai so that he can steer clear of conflict allegations.
He said that despite a lack of direct experience in the petroleum industry, he was confident that the reputation of TPP’s partners would help the company become a success in the business.
