Bangkok, Thailand (PRWEB) February 25, 2013
According to Oil & Gas Journal, Thailand held proven oil reserves of 453 million barrels in January 2013, an increase of 11 million barrels from the prior year. In 2011, Thailand produced an estimated 393,000 barrels per day (bbl./d) of total oil liquids, of which 140,000 bbl./d was crude oil, 84,000 bbl./d was lease condensate, 154,000 bbl./d was natural gas liquids, and the remainder was refinery gains.
Thailand's oil sector is open to foreign involvement, although foreign companies often work in joint ventures with PTT Exploration and Production (PTTEP), PTT's upstream subsidiary. PTT holds a 65 percent stake in PTTEP, which accounts for 32 percent of the country's domestic oil and gas production.
One of the newest oil operators in Sukhothai named Black Diamond development and exploration limited currently holds rights to explore on PTTEP's Sirikit field, which is considered to be a prime location, and a significant crude oil production plug, which supplied more than 22,000 bbl./d of oil in 2010. Moreover according to recent governmental 2d and 3d seismic data it could do much more in 2013.
PTT stated, “that the exploration and production for (PTTEP) expected to extract oil and gas from the Sirikit S1 oil field for the next twenty years because of new technology.
Ronald Flynn, Founder of Black Diamond stated, “ We have been working over the last three months in Sukhothai and realize that the S1 field is the first major field in Thailand with huge deposits of hydrocarbons and gas. Additionally it is our objective to work expeditiously with both local and government officials to get our exploration underway”.
Thailand's oil sector is open to foreign involvement, although foreign companies often work in joint ventures with PTT Exploration and Production (PTTEP), PTT's upstream subsidiary. PTT holds a 65 percent stake in PTTEP, which accounts for 32 percent of the country's domestic oil and gas production. Foreign companies like Black Diamond Limited could supply the bulk of Thailand's domestic oil production, with Chevron producing almost 70 percent of the oil and condensates production from its offshore fields.
Other players with sizeable stakes include, Mitsubishi Moeco, and BG Group as well as other smaller independent companies Like BDDEL. PTT has a considerable presence in Thailand's downstream sector, with 28 to 49 percent-stakes in five of the country's key refineries as well as equity interests in downstream subsidiaries Thai Oil Company (Thai Oil) and the Thai Petroleum Pipeline Company (Thai pipeline) PPT, which currently has a monopoly on natural gas transmission and distribution.
Chevron is developing satellite fields to sustain production around Benjamas. While PTTEP's Sirikit field for Black Diamond Limited will began exploration of Hydrocarbon and gas with major development on 160 acres of land acquired by BDDEL for two existing wells ready for production.
Thailand wants to attract more investment in the upstream to meet rising demand for hydrocarbons while trying to boost reserves and production. Thailand plans to hold its 21st upstream licensing round for 22 blocks, of which 11 are located onshore in the Northeast region, 6 in the onshore North-central region, and 5 in shallow offshore waters of the Gulf of Thailand.
Thailand lacks crude oil pipelines, and it relies on several oil terminals and ports as well as floating facilities. PTT's subsidiary, Thai Petroleum Pipeline Company (Thappline), developed the country's main trunk line that runs from the Sri Racha Oil Terminal in the south to the northern Lumlukka and Saraburi terminals.
Thappline's oil pipeline infrastructure consists of the 153-mile trunk line and 70 miles of additional local spurs, which most analysts consider inadequate to meet the country's growing oil demand requirements. Thailand does not currently have any international oil pipeline connections. Black Diamond Limited recently acquired enormous amounts of land and has already communicated with the Thai Government that they will be submitting plans to build a gas pipeline that can be used for the deliver of natural gas from Sirikit to the main city.
The Thai government plans to construct an oil pipeline and storage facilities between the Andaman Sea and the Gulf of Thailand in order to facilitate transportation of crude oil imports from the Middle East to Southeast Asia. The Energy policy & planning office, of Energy, Thailand “EPPO” has already ordered a feasibility study for the pipeline project and anticipates the study to be ready by 2013.
A majority of Thailand's gas production is located in the Pattani Trough in the Gulf of Thailand. PTTEP, alongside foreign partners Total and BG Group, have stakes in Thailand's largest producing field, Bongkot, which has averaged production rates of over 600 MMcf/d for the past several years. Equity partners are drilling more wells to improve and sustain gas production in the field.
The Arthit field, located about 350 miles south of Bangkok, commenced operation in 2008 and the adjacent Arthit North came online in 2009. Combined production from the fields ramped up to 500 MMcf/d.
During the first quarter of 2013 Black Diamond development and exploration limited continued to grow their oil business everywhere through major investments made in the Sukhothai basin of Thailand. “Black Diamond Limited” BDDEL’s, continued investments have made it possible to transform their operation and control more than 75 Rai of prime oil on Sirikit land.
While companies have been pursuing oil and gas leases in Thailand for years, the recent efforts by Black Diamond to start new exploration has been met with pure excitement because of a technology they will use. Black Diamond will use this new technology to drill newer deeper wells systematized for horizontal advanced drilling.
Investors have rallied behind Black Diamond because of strong and dependable financial forecasts for 2013. Equally with existing well production, and new exploration on the Sirikit S1, not to mention a 20-year forecast to produce by “PTTEP”, Black Diamond partners and shareholders are enormous winners. According to Black Diamonds top management and in a statement to the press by the Founder Ronald Flynn, "we are rich with oil and gas reserves which are heavily concentrated and deposited on our properties. It is our intention to drill, and explore as many new wells as can be put in the ground and turned online".
This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of the 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections.