PTT Exploration and Production (PTTEP), Thailand’s state-owned oil and gas exploration and production company, announced it has taken a final investment decision (FID) on development of the Bussabong gas field (G3/65 project) in the Gulf of Thailand. First production is targeted for 2028, with the field to be tied back via subsea pipeline to the existing production facilities at the adjacent North Bongkot field, according to reports.
The Bussabong gas field is reported to be developed through a subsea pipeline tie-back to the central processing platform (CPP) and production facilities of the adjacent North Bongkot (G2/61) field. This represents a development approach that utilizes existing infrastructure rather than constructing new offshore platforms, and is reported to be linked to Thailand’s domestic gas processing and transport system for energy supply. PTTEP is reported to hold a 60% operating interest in the project, with the remaining 40% held by Valeura Energy.
Initial production from the Bussabong gas field is planned to start at 30 million standard cubic feet per day (MMSCFD), increasing to 40 MMSCFD by 2030, according to reports. The development period is expected to take approximately two years, and the project area covers approximately 11,647 square kilometers, it was reported.
Thailand has reportedly continued to pursue new gas field development linked to existing production infrastructure in the Gulf of Thailand to address declining domestic natural gas production, and this FID is reported to be part of that effort.
This project is cited as an example of a recent trend in gas field development that emphasizes capital efficiency, opting for a tie-back to the existing North Bongkot facility rather than constructing a new large offshore platform. Thailand and other Southeast Asian nations are reported to be seeking a balance between declining domestic gas production and expanding LNG imports, and the increase in smaller-scale, faster-to-develop gas field projects utilizing existing infrastructure is seen as reflecting this trend. The equity partnership structure between PTTEP and foreign independent energy company Valeura Energy is also interpreted as an example of continued partnerships between state-owned companies and foreign independent energy firms in Southeast Asian gas field development.
The actual progress of development following project sanction, and whether the 2028 first-production target is achieved, are the first items to confirm. Also worth watching is whether gas development activity across the broader Gulf of Thailand area is gaining momentum overall, given that gas field development agreements have also recently continued in the neighboring Malaysia-Thailand Joint Development Area (MTJDA).