Pailin

Pailin Oil and Gas Field Profile

Location and Geology

The Pailin Oil and Gas Field is located offshore in the Gulf of Thailand, specifically within Block B12/27. It is situated approximately 160 km east of the southern province of Nakon Si Thammarat, Thailand. The field is in shallow water with a depth of about 217 feet.

Discovery and Development

• The Pailin field was discovered in 1990.
• Exploration drilling began in 1996, with the seventh successful well drilled in February 1997.
• The field was developed under a significant investment program, initially valued at $375 million, which later exceeded $820 million including Phase II developments.

Operators and Ownership

• The field is currently operated by Chevron Thailand Exploration and Production, Ltd. (CTEP), although PTT Exploration and Production Public Company Limited (PTTEP) holds the majority ownership with a 45% interest.
• Other partners include Chevron Thailand Exploration and Production, Ltd. (35%), PTTEP SP Limited (15%), and MOECO Thai Oil Development Co., Ltd. (5%).

Production

• Production from the Pailin field began in August 1999, marking one of the largest and most complex single gas development schemes in Thailand.
• The initial production rate was 30 MMcfd from five wells through two wellhead platforms. The field was planned to reach 165 MMcfd in the fourth quarter of 1999 and an additional 165 MMcfd with the second phase, which came online in mid-2002.
• By the time of the Phase II development, the field was producing 330 MMcfd of gas and 6,800 b/d of condensate. Peak production rates during commissioning reached as high as 230 MMcf/d.
• As of recent data, the North Pailin field has recovered 59.39% of its total recoverable reserves and currently accounts for approximately 8% of Thailand’s daily gas output. Production is expected to continue until the field reaches its economic limit in 2055.

Infrastructure

• The development includes 11 wellhead platforms and two central processing platforms. The gas is delivered into PTT's network via a pipeline connecting to the Erawan-Rayong offshore trunk line.
• Chevron has also established an Integrated Operations Center (IOC) in Bangkok, which controls and maneuvers the production system of the Pailin field, along with other fields, in real-time.

Reserves

• The field has significant reserves, including:
  • Condensate: 8.77 million bbl (1P reserves as of 2019) and 5.73 million bbl (1P reserves as of 2021).
  • Gas: 8,100.81 million m³ (1P reserves as of 2019), 7,702.11 million m³ (remaining reserves as of 2021), and 5,699.56 million m³ (1P reserves as of 2021).
• Unocal initially estimated proved gas reserves at 2 trillion cubic feet (tcf).

Economic and Environmental Impact

• The gas produced from the Pailin field is sold to the Petroleum Authority of Thailand (PTT) under a 30-year gas sales agreement signed in 1996. This gas is used to generate low-cost electricity, reducing the cost by 20-30% compared to using fuel oil or imported coal.
• The project employs the latest technology to minimize environmental impact, contributing to Thailand's energy security and economic development.

Additional Information

• The Pailin field is part of the Contract 4 complex, along with the Moragot and Ubon oil and gas fields.
• Chevron and its partners have been involved in various community and environmental initiatives, aligning with their commitment to sustainability and social responsibility.