Chevron Offshore (Thailand) Limited (COTL), a subsidiary of the U.S. energy giant Chevron, and BCPR, a Bangchak Group affiliate and Thai energy company, have joined forces to undertake actions aimed at strengthening exploration and development activities at an offshore block in the Gulf of Thailand, Southeast Asia.
Illustration; Source: Chevron
The Chevron-BCPR partnership will collaborate on petroleum exploration and production on Block G2/65 under a production sharing contract (PSC) model to bolster Thailandโs energy security, following a ceremony that Dr. Prasert Sinsukprasert, Permanent Secretary of the Ministry of Energy, presided over, marking the launch of the partnership after the Minister of Energy issued the supplementary PSC.
Dr. Sinsukprasertexplained: โThis marks a significant opportunity for the petroleum industry, as a new Thai investor enters the sector. It also provides a valuable learning opportunity for personnel at BCPR Co., Ltd., who will gain insights into the development of petroleum fields with complex geological conditions in the Gulf of Thailand from Chevronโa company with extensive experience in petroleum exploration and production both in Thailand and internationally.
โThis collaboration will help prepare BCPR Co., Ltd. to become a future operator in Thailandโs petroleum exploration and production sector. The signing of this supplementary PSC plays an important role in ensuring the continuity of domestic energy supply, serving as a foundation for driving economic growth and strengthening the countryโs energy security.โ
Aside from Dr. Sinsukprasert, the ceremony was attended byย Warakorn Brahmopala, Director General of the Department of Mineral Fuels,ย and senior executives from the Department of Mineral Fuels, Chevron, and Bangchak. The list of Chevronโs representatives includedย Chatit Huayhongtong, President of Chevron Thailand Exploration and Production,ย andย Ronnarong Chanleka, General Manager of Chevron Offshore.ย
Huayhongtong highlighted: โThe future of energy will be built on strong partnerships, and a shared understanding of the critical role energy plays in the development of economies and communities. Our partnership with BCPR, a Bangchak Group affiliate, represents a fusion of Chevronโs world-class knowledge and innovation, along with our experience and expertise in petroleum exploration and production in the Gulf of Thailand, which is considered an upstream energy business.
โThis is being combined with Bangchak Groupโs strong capabilities and leadership in Thailandโs midstream and downstream energy sectors. This partnership will support the development of Block G2/65, while also facilitating the transfer of knowledge and expertise, as well as the development of human resources to strengthen the countryโs long-term energy security. This collaboration also reaffirms Chevronโs commitment to being a trusted partner in delivering more reliable, affordable, and cleaner energy for the country.โ
During the ceremony, Bangchak Groupโs attendees wereย Pairoj Kaweeyanun, Director of Bangchak Corporation Public Company Limited and BCPR; Chaiwat Kovavisarach, Group Chief Executive Officer and President of Bangchak Corporation; Phatpuree Chinkulkitnivat, Chief Financial Officer and Senior Executive Vice President, Accounting and Finance, Bangchak Corporation and Director of BCPR;ย andย Komut Maneechai, Vice President of BCPR.ย
As Chevron, which serves as the operator, secured the PSC for Block G2/65 in 2023, the project is currently in the exploration phase. Thanks to this collaboration, the firm has transferred 30% of its rights and obligations under the PSC to BCPR to enhance the potential for petroleum resource exploration in the block.
Kovavisarach emphasized:ย โThis collaboration reflects the strength of a shared vision among strategic partners dedicated to advancing Thailandโs energy security. [โฆ] This collaboration also builds upon the knowledge and experience gained from BCPRโs investment in OKEA in Norway. This partnership has been made possible through the support of the Ministry of Energy and the Department of Mineral Fuels, both of which play a pivotal role in shaping the nationโs energy strategy.โ
The Thai player points out that its official entry as a co-venturer in the exploration block underscores the importance of strong industry collaboration in advancing domestic energy exploration and meeting the Asian countryโs growing energy needs.
Chevronโs new partnership in Thailand comes shortly after the firm received the green light to integrate Hess Corporation into its portfolio, pinpointing four regions as the hotspots where the merger will have the strongest impact.
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๐๐จ๐ข๐ง ๐ฎ๐ฌ ๐๐จ๐ซ ๐๐ข๐ ๐ ๐๐ซ ๐ข๐ฆ๐ฉ๐๐๐ญ ๐๐ง๐ ๐๐ฆ๐ฉ๐ฅ๐ข๐๐ฒ ๐ฒ๐จ๐ฎ๐ซ ๐ฉ๐ซ๐๐ฌ๐๐ง๐๐ ๐ข๐ง ๐ญ๐ก๐ ๐ก๐๐๐ซ๐ญ ๐จ๐ ๐ญ๐ก๐ ๐จ๐๐๐ฌ๐ก๐จ๐ซ๐ ๐๐ง๐๐ซ๐ ๐ฒ ๐๐จ๐ฆ๐ฆ๐ฎ๐ง๐ข๐ญ๐ฒ!