UAC to start producing oil, gas from Sukhothai fields this month
SET-listed UAC Global says it is confident it can start producing crude oil and natural gas from two oil fields in Sukhothai province this month.
UAC Global CEO Chatchaphol Prasopchoke said the company had received concessions for the L10/43 and L11/43 blocks of the Arunothai and Burapha oil fields. The concessions run until 2033.
Chatchaphol said work to install machines and equipment on the oil fields is over 60 per cent completed and production could start within this month.
UAC Global expects to produce about 300 barrels of crude oil a day from the concessions. The oil would be sold to domestic refineries, Chatchaphol said.
Meanwhile, the natural gas from the fields will be distributed to the UAC’s gas separation facility and two power plants – Saothin and Pradu Thao.
The company expects to start realising revenue from the two fields in the third quarter of this year. It forecasts earnings of about 250 million baht per year from the two concessions based on current crude oil prices and the dollar exchange rate.
