““Introductory Introductory Remarks” on The Remarks” on The 1919thth Bidding Bidding RoundRound

Mr. Nopadon MantajitMr. Nopadon MantajitDirector GeneralDirector GeneralDepartment of Department of Mineral FuelsMineral Fuels11 August 200511 August 2005

The Open of New Bidding Round is the The Open of New Bidding Round is the Enhancing of New DiscoveryEnhancing of New Discovery

““The 34 Years of The 34 Years of our Success”our Success”

• The 1The 1stst Round: Discovered of Erawan Round: Discovered of Erawan

“The Beginning of Thailand E&P”“The Beginning of Thailand E&P”

• The 6The 6thth Round: Sirikit & Namphong Fields Round: Sirikit & Namphong Fields

“The succession of Onshore Exploration”“The succession of Onshore Exploration”

• The 13The 13thth Round: The Blooming of Flowers Round: The Blooming of Flowers

“Offshore Oil Discovery”“Offshore Oil Discovery”

Thailand’s Petroleum Balance D

om

esti

cD

om

esti

c

34%

Total = 1,576Total = 1,576

8 RefineriesTotal Capacity

1,042,000 BBLD

ConsumptionProcurementProcurementRefineryRefinery

66%

Total = 1,194Total = 1,194

Imp

ort

ed

Imp

ort

ed

6 Gas Separate Plants

1,800 MMSCFD

Gas 444

Oil Product 750

Oil Product Oil Product 4848

CrudeCrude 846846

GasGas 152152

GasGas 383383

CrudeCrude 8888

CondyCondy 5959 Crude 50Oil Product 92

Jan – May 2005Jan – May 2005

Export

34% of Procurement44% of Domestic Consumption

Unit: BOED

Total 142

DMF Roles and ResponsibilitiesDMF Roles and Responsibilities

REGULATORY BODY

• Exploration• Exploration

ASSETASSETManagerManager

• Development• Development

• Production• Production

• Reserves• Reserves

• Reserve Management• Reserve Management

• Production Planning• Production Planning

• Investment Promotion• Investment Promotion

Management Management & Planning& Planning

Reserve ManagementReserve ManagementReserve ManagementReserve Management

Possible(P3)

Probable(P2)

Proved(P1)

• Develop Unexploited Reserves Develop Unexploited Reserves

• Explore New ReservesExplore New Reserves

Resources Reserve

- Seismic Acquisition & Processing

- Drilling Wells (Exploratory, Appraisal)

Development & Production PlanDevelopment & Production Plan

Short Term (5 years)Short Term (5 years)

Medium Term (10 years)Medium Term (10 years)

Long Term (20 years)Long Term (20 years)

• Marginal Field Development

• Accelerate Development of Existing Field

• Reservoir Evaluation to Increase Production

• Preparing for Additional Sources (Piped Gas, or Others)

• Manage the R/P Raito

• Stimulate E&P Activities

Investment OpportunitiesInvestment Opportunities

Power PlantsPetrochemical

NGVRefineries

Power PlantsPetrochemical

NGVRefineries

MarketsMarkets DMFDMF

Potential Resources

Host CountryPolicy

The 19th Bidding Round

82 Blocks Onshore 64 Blocks Offshore 12

Blocks Andaman 6Blocks

1 Year PeriodCollecting

Application every 15 of the Month

What’s New & Opportunity in the 19What’s New & Opportunity in the 19thth Round Round

Law ReformProject

•Reduce Work Flow and Speed Up the Reduce Work Flow and Speed Up the

Approval Process Approval Process

•Incentive to Stimulate E&P ActivitiesIncentive to Stimulate E&P Activities

•Enhanced Marginal Field DevelopmentEnhanced Marginal Field Development

The Current Regimes: The Current Regimes: “Feasible and “Feasible and Substantial Substantial Attractive” Attractive”

Improving Improving ourselvesourselves

Potential ResourcesPotential Resources

• 4 Areas

• Previous successes

- N Central Oil Fields

- GOT Oil & Gas Fields

- N.E. Gas Fields

• Cont. E&P Activities

- Onshore Exploration

- Development of Arthit

• Innovation Technology

- Phuhom Gas Field