Neighbours keen to resolve claims in the Gulf

Thailand is keen to resolve problems with Phnom Penh on overlapping sea claims in the Gulf of Thailand in a bid to undertake joint development of natural gas in the future.
If the problems can be solved, Cambodia will also benefit from development cooperation with Thailand in petrochemical extraction.
Pailin Chuchottaworn, chief executive officer and president of PTT Plc, said Thailand had to prepare reserve areas of natural gas to ensure a supply over the next 10 years as the country’s existing supply in the Gulf was declining.
“If we cannot find any new supply source of petroleum, it will affect the company’s petrochemical business, which would prompt us to have to face higher import costs,” Pailin said.
However, the company hopes the problem – overlapping sea claims – will be resolved in the near future to create a win-win development for both countries. If the sea claims can be solved this year, both sides would have a new source of natural gas.
PTT also plans to focus more on investment in specialty petrochemical business. The strategy will encourage the company to achieve more value-added products. It would pave the way for the company to distribute its basic petrochemical service to other neighbouring countries, which have rich natural resources.
Cambodia, in particular, would enjoy benefits from exporting natural gas to Thailand, which is an important material in petrochemical output, as it could join hands in developing basic oil and gas products in Phnom Penh.
Energy Minister Arak Chonlatanon said both countries were trying to resolve the land claims as fast as they can to maximise the chance for economic development.
The Mineral Fuels Department said that the overlapping claims in the Gulf were being discussed by the two countries’ governments. However, four companies were granted right to explore for fuel since 2003, including Thailand Bloc 5&6 LLC for the concession plot number 5-6, British Gas Asia Inc for plot numbers 7, 8 and 9, Chevron Thailand Exploration and Production for the plots 10, 11 and 12 (A) and 12 (B) and PTTEP International for the plot number G9/43. However, none of these firms have been allowed to enter these areas to undertake exploration work.
It also reported that production of natural gas in the Gulf of Thailand increased from 3.17 billion cubic feet a day last year to 3.44 million cubic feet a day this year. It is forecast that production will increase to 3.6 billion cubic feet per day next year. Then daily production was likely to remain at the same level as this year until 2017. It would then gradually drop to 3.35 billion cubic feet a day in 2018 and 3.2 billion cubic feet in 2019 and finally to 2.88 billion cubic feet by 2022.
The department also predicts that the natural gas supply will drop to 479 cubic feet per day in 2031 – if they are no new sources of supply.