Chevron Thailand Exploration and Production has signed an agreement with the Thai Ministry of Energy to extend the production period of four offshore blocks in the Gulf of Thailand for an additional period of 10 years, from 2012 to 2022.
The 10-year deal facilitates Chevron’s long-term plans to boost production from the area to more than one billion cubic feet of natural gas per day. It has working interests in the operating areas within these blocks ranging from 60% to 80%.
Chevron is planning to invest $4 billion across its Asia Pacific upstream and downstream businesses in 2007, approximately 20% of the company’s worldwide capital budget. Historically, the company and its joint venture partners have invested more than $12 billion in Thailand’s oil and gas sector and paid the cumulative royalty of nearly $3.5 billion from 1981 to 2006.
Dave O’Reilly, chairman and CEO of Chevron said: We extend our gratitude to the Kingdom of Thailand for its ongoing support and express our commitment to assisting with the long-term expansion of Thailand’s energy resources.