Thailand's crude oil, condensate and natural gas production increased in the first 10 months of 2013 compared with the same period of 2012, but the growth rate has slowed considerably, according to the latest energy ministry data.
Crude oil production rose 1.8% year on year to 151,305 b/d over January-October, from 148,615 b/d. However, output in the first 10 months of 2012 was 6.6% higher than the corresponding period of 2011.
Condensate production increased 3.5% year on year to 83,668 b/d over January-October, from 80.870 b/d, down from the 2012 growth rate of 4.5%.
Natural gas production grew 2.5% year on year to 730,662 b/d of oil equivalent over January-October, from 712,715 boe/d, well below the 10.7% growth rate seen in the first 10 months of 2012.
Crude oil imports over January-October rose 1% year on year to 836,969 b/d, from 828,956 b/d. They accounted for 41.8% of total energy consumption of 2 million boe/d.
Natural gas and LNG imports increased 8.6% year on year to 184,250 boe/d in the first 10 months of 2013, from 169,650 boe/d. They accounted for 20.1% of natural gas consumption and 9.2% of the country's total energy needs.
Thailand does not import condensate. It exported 130,256 b/d of petroleum products over January-October.
Thailand had proved crude oil reserves of 232 million barrels at the end of 2012, up 8% from 2011, and 9.04 Tcf of proved natural gas reserves, up 10% over the same period, according to the latest figures available.
A stalled bidding process has hampered any further expansion in reserves from new exploration. Public concerns contesting royalty payments and environmental issues caused the government to shelve its 21st bidding round for 22 blocks called in 2012. No revised schedule has been announced.
The Department of Mineral Fuels administers 63 active exploration concessions, 30 offshore and 33 onshore, covering 79 blocks.
No headway has been made with Cambodia for developing the Overlapping Claims Area in the Gulf of Thailand, a likely source of significant natural gas production. A political solution is still needed before concessions initially awarded in the early 1970s can go ahead.
Myanmar, Thailand's western neighbor, supplies 20% of natural gas needs through a pipeline linking the Yetagun and Yadana offshore fields. Thailand is also a partner in the Zawtika offshore project, which is expected to begin commercial production in the first quarter of 2014. MYANMAR REFORMS SHAKE UP SUPPLY DEALS
A good relationship exists between the two countries. However, supply agreements were signed when Myanmar desperately needed foreign income, so exports were prioritized over local demand -- a situation that has altered dramatically since its political reforms.
Myanmar has revised its gas offtake in the original sales and purchase agreement for Zawtika, nearly doubling quantity.
With a need for Thailand to shore up its energy supplies, state-owned conglomerate PTT is continuing an aggressive foreign expansion program through its upstream affiliate PTT Exploration & Production.
Further investment has been made in production assets in Indonesia, and research is ongoing to better understand the potential of exploration in the Andaman Sea adjoining Burma. This comes amid a successful reactivation of its Montara project in northwestern Australia.
A 10-week oil spill and subsequent fire at the Montara drilling rig in 2009 led to Australian regulators suspending PTTEP's drilling license and to production delays that stretched into Q2 2013.
PTT has a 38% stake of domestic petroleum product sales, ownership of all the country's six gas separation plants and a monopoly on natural gas distribution. That puts it at the center of government efforts to streamline and liberalize the market.
PTT has major stakes in three of the country's six crude oil refineries, so an energy ministry requirement to lift oil reserves at refineries from 5% to 6% of sales volume, equaling 45 days of consumption, from November did not face opposition, even though it raised production costs of to Baht 0.15/liter, from Baht 0.12/liter.
A decision to allow companies to distribute LNG by road transport from mid-2014 will break PTT's monopoly, although its Gas Business Unit will still operate the country's only LNG terminal.
Policies to shift commercial transport away from diesel and to natural gas are dependent on a lower-than-cost capped price that PTT must absorb and an ability for the company to expand its retail NGV network. Consumption rose 11% year on year to 8.5 million kg/d in the first 11 months of 2013.
