PTTEP hires India's L&T Valdel Engineering to Build Gas Platform

PTT Exploration and Production PCL has awarded India-based Larsen and Toubro Valdel Engineering a contract worth $250 million to construct and install of three wellhead topsides and three underwater jackets, as well as laying a 21 kilometre subsea pipeline wellhead platform for its Zawtika Block M9 natural gas production project, off the coast of Myanmar.

The SET (Stock Exchange of Thailand) listed PTTEP, a subsidiary of Thailand’s largest energy conglomerate PTT PCL, expects the wellhead platform to be ready by April 2013.  Block M9 will commence the operation later in that year.

The platform, which will stand 90-120 meters above the sea bed, with its foundation drilled 140-160 meters under the sea bed, is L&T’s first assignment with the Thai company.

PTTEP has secured a 30-year agreement with the Government of Myanmar.  The Zawtika project’s preliminary reserves are estimated to be about 1.4 trillion cubic feet.  By 2013 PTTEP will be able to produce natural gas at a rate of 300 million cubic feet a day.

The gas to be taken by PTT will replace 2.4 billion litres of fuel oil import a year and save Thailand about THB 400 billion through the agreement.

M9 Block is in the Gulf of Mataban in the Republic of the Union of Myanmar about 300 kilometres south of Yangon. Zawtika is a prime gas field in M9 and M11 project, operated by PTTEP International Co Ltd (PTTEPI), a wholly-owned subsidiary of PTTEP.