Director-General In 2001, all business sectors in Thailand finally made a steadily recover from the 1997 Asian economic crisis, approximately at 1.5%-2% growth rate. Modest as it was, still, it is a good sign for investors. Procurement of energy supply for Thailand is one of the most important vehicles in supporting economic recovery. The Thai government has focused on this and prudently planning related management, policies and strategies. In addition, we are presently, reforming the energy affairs bureaucracy system in order to increase government efficiency and quality of services. Thailandûs energy demand increased about 5 % in 2001 and demand is projected to continue to increase during 2002. The Department of Mineral Resources (DMR), one of the government energy sectors, has an incentive policy for petroleum and coal exploration and are trying to maintain the current energy reserve. Recently, Thai and Cambodian governments have signed a Memorandum of Understanding (MOU) for a further development in the overlapping area where a very high potential of hydrocarbon deposit in Southeast Asia is expected. We do hope that it will become Thailandûs most important supply of petroleum resources in the near future. Furthermore, the DMR also has an intensive policy to expand the energy utilization market in Thailand. We have been involved in the regional Trans Asian Pipeline and the Bangkok Ring natural gas pipeline project. Policies have been put to encourage more use of natural gas. Several projects are in the feasibility or pre-feasibility stage, for instance, the Natural Gas Vehicle (NGV) project and the Gas-to-Liquid (GTL) project. A policy to utilize diverse energy sources is necessary for the energy security in Thailand, so coal resources are also an important component. Coal with clean technology to protect the environment is also promoted for use in power generation. Besides energy consumption policies, a rehabilitated environmental policy is also an important priority for Thailand. Recently, a workshop on the decommissioning of offshore oil platforms and related structures was held to find an optimal balance between environmental protection and practical operations. The best technical and financial options available were balanced and coordinated with important environmental considerations. Concrete resolutions defined are being processed and updated rules and regulations will replace. We would like to assure the public that we are trying very hard to protect the sea by correcting past environmental damage and minimizing the risk of future environmental destruction. Lastly, the collaboration between the Thai government and the energy resource operators in the continued development of the energy business at international standards is the most important assurance to the Thai people on the stability of their energy supply. Nopadon Mantajit Director General Department of Mineral Resources 1 D i r e c t o r The year 2001 was a brighter year for the petroleum business since the Asian economic crisis in 1997. The increasing economic growth, higher energy demand, and sharply rising oil price provide an index of favorable investment environment. There had been, unfortunately, a short interruption after the dreadful event of the World Trade Center in September 11th, 2001. The global economy came to a halt for an introspective reflection. All business sectors were interrupted and pondering which direction the global economy would head for. However, after a brief moment all business sectors continue to grow, including the oil business as well. The Mineral Fuels Division (MFD) is still on its track to coordinate its energy policy and regulations, which allow the Thai government and international operators to smoothly interact in the energy business and create a competitive investment environment. The petroleum and coal exploration and production investment in Thailand will continue on a basis of equivalent benefit between the government and the operators. New technology significantly propels the Thai petroleum business forward at the international standard. Furthermore, a policy to reform the bureaucracy system in energy affairs will help the Thai government to work more smoothly, increase efficiency in the organization, and enhance the value of services that are provided to international operators in the Thai energy resource community. Energy has an important role not only because of its direct economic benefits, but also in its role in improving peopleûs quality of life. Useful data in the form of statistics to provide an insight to the upstream energy business and the consumption of energy in Thailand are clearly published in the document. We thank you for your interest in our countryûs opportunities and hope that you will find our effort useful. Krairit Nilkuha Director Mineral Fuels Division 3 C o n t e n t Message from the Director-General 1 Message from the Director 3 Content 4 Highlights 5 30 years of success 7 Benefits 9 Petroleum Balance 14 Petroleum Concessions 17 Petroleum Exploration 25 Field Development 28 Petroleum Production 34 Activities in the Malaysia-Thailand Joint Development Area (MTJA) 38 Petroleum Reserves 40 Coal Activities in Thailand 45 List of Petroleum Concessionaires 54 Government Agencies, State Enterprises and Institutes 58 List of Coal Operators in Thailand 60 Abbreviation 61 4 H i g h l i g h t s Activities 1999 2000 2001 Unit Geophysical Surveys • 2D seismic 2,534 493 - line-km • 3D seismic 1,658 134 827.82 sq. km Drilling • exploratory* 35 47 43 well • development 165 179 155 well New Prospects • number of new prospects 8 **7 ***11 Production (Total Sale) • by 8 8 8 concessionaire • from 26 25 26 field • natural gas 650 672 661 Bcf • condensate 18.0 19.4 18.7 MMbbl • oil 11.5 20.5 22.6 MMbbl • values 68.58 107.27 116.29 billion baht • royalties 8.50 13.47 14.6 billion baht • royalty allocation to the sub-district administration organization 203.43 330.63 342.51 million baht • royalty allocation to the provincial administration organization 305.14 495.94 434.51 million baht Concessions • number of concessions 26 25 25 • number of concession blocks 33 32 32 * Include appraisal wells ** Noan Pluang, Chaba (Kung), Arthit-15-3X, Arthit-15-4X, Arthit-15-5X, Arthit-15-6X, Arthit-16-1X *** South Jarmjuree, Arthit-16-2X, Arthit-16-3X, Arthit-14-1X, Arthit-14-3X, Arthit-14-4X, Arthit-14-5X, Arthit-15-9X, Arthit-15-7X, Arthit-15-8X, Arthit-15-10X). 5 30 Years of Success Established contemporaneously as the Petroleum Act, the Mineral Fuels Division (MFD) has leading role in developing the petroleum resource of the country. The division, as well, has brought other natural energy resources such as coal and oil shale to the public interest. The eminent success of the division can be summarized as follows: On 26 March 1971 the first Petroleum Act was promulgated and given by His Majesty King Bhumibol Adulyadej. In meantime the MFD was set up in the Department of Mineral Resources, Ministry of Industry in order of conveying the Law to success and the first acting director was in charge on 17 January 1972. The first round of petroleum concession bidding was announced on 13 September 1971 and 9 awarders were received altogether 22 blocks. The last, 18th round was publicly open on 11 July 2000. Until 2001, 57 concessions with 92 blocks were already issued and only 25 concessions with 32 blocks were still held. The first-ever petroleum field in Thailand was found in Fang, Chiang Mai long before 1971, but activated by the Law, emerged series of the discoveries: 1971 Surat 1972 Erawan 1973 Bongkot 1974 Kaphong, Baanpot, Dara 1976 Platong, Jakrawan 1977 Jasmine (5-L-1) 1980 Satun 1981 Pladang, Funan, Trat, Pratu Tao, Lan Krabu (Sirikit) 1982 Pakarang, Nam Phong, Chonnabot 1983 Nong Ma Kham, Mae Nam Nan-3, Nong Tum, Phu Hom 1984 Wat Taen, Pru Krathiam, Nong Taku, Bung Ya 1986 Kamphaeng Saen, U-thong 1987 Bung Muang, Nang Nuan-A 1988 Tap Raet, Wichian Buri, Songkhla-1, B4/27-1 1989 Gomin 1990 Dong Mun, Si Thep, Moragot, Pailin, Bua Ban-1, Bo Rang 1991 West Taptim, 1992 B5/27-2, Nang Nuan-B, Ubon, Tantawan 1993 Ton Sak, Yung Thong, B7/32-2, Dao Ruang-1 1994 Mayura, Ton Nok Yoong, Ton Son, Ton Koon, Na Sanun, Mukdahan-1 1995 Benchamas 1996 Plamuk, Pakakrong, Sontaya, Bussabong 1997 West Dara, Maliwan, Chang Daeng, Benchamas North 1998 Ton Rang, North Jarmjuree, South Gomin, Si That-2 1999 Tawan, Chang Phuak, Bua Luang, Boondarik, Arthit-15-1X, Arthit-15-2X, Yala, 10A-1, 11A-1, Nong Jig, South Platong 2000 Noan Pluang, Chaba (Kung), Arthit-15-3X, Arthit-15-4X, Arthit-15-5X, Arthit-15-6X, Arthit-16-1X 2001 South Jarmjuree, Arthit-16-2X, Arthit-16-3X, Arthit-14-1X, Arthit-14-3X, Arthit- 14-4X, Arthit-14-5X, Arthit-15-9X, Arthit-15-7X, Arthit-15-8X, Arthit- 15-10X Many of those have been proved commercial and being produced as following start-ups: 1981 Erawan 1982 Sirikit Main (Lan Krabu) 7 1983 Sirikit West (Nong Makham), Baanpot 1985 Satun, Platong 1987 Pru Krathiam 1988 Nang Nuan-A, Wat Taen 1989 Kaphong 1990 Pratu Tao, Nam Phong 1991 U-Thong, Kamphaeng Saen, Bung Ya 1992 Funan, Surat 1993 Bongkot, Nang Nuan-B, Jakrawan 1994 Bung Muang 1995 Wichian Buri, Sirikit East, Gomin 1996 Na Sanun 1997 Tantawan, Si Thep 1998 Plamuk, Pladang 1999 Benchamas, Trat, Nong Jig, Pailin, Nong Tum 2001 Maliwan Also, corporation with Malaysia to jointly develop the overlapping area between two countries (JDA), found 13 promising fields: 1995 (Cakerawala, Suriya, Muda), 1996 (Tapi, Bulan, Bumi), 1997 (Senja, Bumi East, Samudra, Wira, Jengka, Amarit, Mali). As of sale volume, produced natural gas from the beginning (1981) till 2001 year-end totaled 6.5 Tcf and set the records as follows: 1st Tcf in 1989, 2nd Tcf in 1993, 3rd Tcf in 1996, 4th Tcf in 1998, 5th Tcf in 1999 and 6th Tcf in 2001.