Mubadala keen to bid on Bongkot, Erawan blocks
Mubadala Investment Company is interested in the auction for the Bongkot and Erawan gas blocks in the Gulf of Thailand, which the country’s policymakers expect to hold from April to July this year.
Musabbeh al-Kaabi, chief executive for Mubadala’s petroleum and petrochemicals division, told the Bangkok Post the United Arab Emirates-based investment company is actively seeking to build up its existing business in Thailand, so it is certainly interested in the upcoming auction of the two gas blocks.
The company draws on an excellent track record and operating capabilities in Southeast Asia, said Mr Kaabi.
“We believe we are equipped to play a strong role in the new arrangements for these strategic gas assets,” he said.
The Mineral Fuels Department said the details of the terms of reference and an invitation card for investors are expected to be ready by the end of March because the concessions for these two gas fields are scheduled to expire in 2022-2023. The two blocks produce some 40% of Thailand’s gas supply.
After the two gas blocks are auctioned, policymakers will open new licences for exploration, generally known as Round 21.
Mr Kaabi said Mubadala will consider bidding in Round 21, once more information has been released.
He said the company aims to grow the business and is interested in further exploring any new material opportunities, but these need to be a strategic fit as well as be technically and commercially attractive.
In Thailand, Mubadala’s exploration and production (E&P) business operates in the Jasmine/Ban Yen field in B5/27, producing over 65 million barrels so far.
Mr Kaabi said this operation is expected to hit the 70-million-barrel mark in the first half of 2018, a very substantial increase from Mubadala’s estimation, made at the time of purchase in 2004.
“Jasmine/Ban Yen field continues to be a great story, as we further extend the commercial life of the field,” he said.
Most recently, Mubadala has tested and deployed new drilling technologies and conducted a global first trial of a new workover technology to improve operational performance of the regular programme of maintenance workovers required on the Gulf of Thailand fields. Both have increased efficiency and safety at reduced cost. Across all operations, including the Nong Yao and Manora petroleum fields, Mubadala has developed strong safety and environmental performance.
As of 2017, Mubadala has invested over US$5 billion (156 billion baht) on its E&P business in Thailand.
“Thailand is an important country for us, lying at the heart of the growing Asian energy markets. We are interested in building an upstream sector, but also exploring new opportunities for investment in the downstream sector,” Mr Kaabi said.
Based in Abu Dhabi, Mubadala is ranked as the 14th-largest sovereign investment fund globally and is wholly owned by the government of Abu Dhabi.
Mubadala is a global business engaged across 13 primary sectors, including metals and mining, aerospace, semiconductors, healthcare, renewable energy and capital investments.
Its portfolio in the oil and gas value chain is valued at over $41 billion, representing one-third of Mubadala’s total assets. The portfolio produces around 500,000 barrels of oil equivalent per day and is a top-five supplier to the global polyolefin market that has a refining capacity of 1.4 million barrels per day.