Thailand

Introduction

Thailand joined the ranks of oil and gas producing nations in the 1960s with the discovery of major natural gas fields in the Gulf of Thailand. Early offshore exploration and development established the country as a regional energy player. Sustained activity over subsequent decades expanded production from additional basins and reservoirs. Today, Thailand derives significant domestic energy supply from its network of offshore assets.

This article provides an overview of how Thailand built up its hydrocarbon production base over the past half century. Beginning with pioneering exploration efforts in the 1960s, Thailand witnessed increasing investment and drilling activity both in shallow and deepwater zones. Natural gas served as the main output, meeting surging domestic demand. The emergence of the country as an oil producer further bolstered energy security.

Thailand’s hydrocarbon basins continue to provide substantial resources through the application of improved recovery techniques. With mature fields now prevalent, efforts are underway to prolong output through new licensing and continued technological innovation. The following review highlights the growth of Thailand into a self-sufficient petroleum nation.

Early Offshore Exploration

Thailand’s emergence as a hydrocarbon producer began in the early 1960s with pioneering offshore exploration efforts. The first offshore licensing concession was granted in 1961 to Shell, covering an area in the Gulf of Thailand known as the Pattani Basin. Drilling commenced the same year, with Shell discovering the small Rayong gas field. This was followed in 1971 by the major Erawan gas discovery, one of the largest in the Asia Pacific region.

Further exploration throughout the decade by Shell and new entrant Unocal revealed additional sizable gas fields like Funan, Satun and Platong. With multiple giant gas finds, the Pattani Basin established itself as a world-class gas province. The shallow water discoveries also spurred a rapid development program using conventional fixed platforms. Thailand’s ascent as an energy producer was underway, led by the breakthroughs in the Pattani Basin.

Expanding Interest and Production

The prolific gas discoveries made by Shell and Unocal generated greater investor interest in Thailand’s offshore potential in the 1980s and 90s. Added investment and drilling activities expanded beyond the original Pattani Basin. Chevron, Total, PTT Exploration and Production, and ExxonMobil entered the upstream sector both as operators and partners. Natural gas output increased rapidly during the period, exceeding 1 billion cubic feet per day by the 1990s to meet surging domestic electricity demand.

Nearly 25 fixed platforms were installed and hundreds of development wells drilled. The boost in activity resulted in important later-stage discoveries like Bongkot in 1987, the largest offshore gas field in Thailand. The stage was set for Thailand to leverage its hydrocarbon resources to support economic growth in the coming decades.

Additional Offshore Basins

While the Pattani Basin remained vital, Thailand’s expanding offshore industry branched out geographically during the 1990s and 2000s. New acreage was explored and developed in the Northern and Central Basins in the Gulf of Thailand. Significantly, these areas marked Thailand’s first major crude oil discoveries offshore, including the Jasmine field in 1994 and Maniya in 2002.

This established Thailand as not just a gas producer but also an oil province, boosting energy security. Later in the 2000s, newly available 3D seismic data allowed exploration at greater depths below 2,000 meters. Further significant gas finds were made in deepwater areas, including Geminia, Arthit and Sinphuhorm. Thailand’s offshore development was progressing into more complex geology and water depths.

Deepwater Advancements

Advances in offshore exploration and drilling technologies opened up new deepwater opportunities for Thailand in the 1990s and 2000s. Improved 3D seismic imaging allowed geologists to analyze complex geological structures below the Gulf of Thailand in greater detail. This paved the way for exploration drilling at greater depths than before.

Whereas early offshore development was focused in shallow waters of around 50 meters, new wells began tapping reservoirs more than 2,000 meters below the seabed. Discoveries like Arthit and Geminia extended Thailand’s gas production into deepwater areas as well.

Later licensing rounds also focused on unexplored deepwater acreage, believing significant potential remained hidden below the Gulfs long-producing shallow zones. While more complex and costly, deepwater development enabled Thailand to fully explore its hydrocarbon basins.

Current Oil and Gas Production

Today Thailand produces over 200,000 barrels per day of crude oil and 1 billion cubic feet per day of natural gas to meet domestic demand. The country is a net exporter of hydrocarbons. Majority of oil production comes from Gulf of Thailand fields like Bualuang, Benchamas, Jasmine, and Erawan. Natural gas is produced across legacy assets like Platong and new deepwater discoveries like Geminia.

Key operators in Thailand include PTTEP, Chevron, TotalEnergies, ExxonMobil, and Mubadala Petroleum. Production comes from a mix of old shallow water platforms and new floating production systems. Enhanced recovery techniques are being applied widely to extend field life. While maturing, Thailand’s offshore basins still provide the bulk of energy supply through continuous optimizations.

Outlook

While Thailand’s major offshore basins are now considered mature, efforts are ongoing to prolong output and uncover additional resources. Enhanced recovery methods can increase production from older fields, while new licensing rounds aim to attract fresh exploration investment.

Advances in seismic imaging and drilling will also enable tapping of deeper objectives. Promoting offshore development remains critical for Thailand to maintain domestic energy supply and exports. Decline rates are now a key focus area for operators.

Future successes may come from expanding into undeveloped zones like the Phu Khanh Basin. Leveraging technology and innovation to optimize its mature producing assets is crucial for Thailand to continue benefiting from its established offshore petroleum resources.

Conclusion

Over the past half century, Thailand has leveraged its offshore hydrocarbon resources to become a leading regional oil and gas producer. Starting with pioneering exploration efforts in the 1960s, sustained activities across multiple basins enabled Thailand to grow into a major energy power. Today, the country derives tremendous economic benefit from its network of offshore platforms and fields.

Thailand’s rise was led by the rapid development of major natural gas discoveries in the Gulf of Thailand to meet surging domestic electricity demand. Later oil discoveries further bolstered energy security. While many basins are now mature, technologies to enhance recovery and maintain output remain vital. Thailand’s offshore success represents a model for how a nation can capitalize on its petroleum assets. Continuous innovation and new investments will be key for prolonging Thailand’s offshore production long into the future.