press release Chevron continues its commitment to safely transfer Erawan by signing Site Access Agreement 2, Operations Transfer Agreement, and Asset Retirement Access Agreement with PTTEP ED
Chevron Thailand Exploration and Production, Ltd. (Chevron Thailand) and PTTEP Energy Development Company Limited (PTTEP ED) recently held a signing ceremony of the Site Access Agreement 2 (SAA2), Operations Transfer Agreement (OTA) and Asset Retirement Access Agreement (ARAA). The agreements will foster further cooperation between both parties in relation to the transition of Erawan which will be handed over to PTTEP ED, the new operator of the field, in April 2022.
The signing ceremony was held at the office of Department of Mineral Fuels and was attended by top executives of each party including Sarawut Kaewtathip, Director General of the Department of Mineral Fuels, Chatit Huayhongtong, President of Chevron Thailand Exploration and Production Ltd. and Montri Rawanchaikul, Chief Executive Officer of PTTEP Energy Development Company Limited (PTTEP ED).
This set of agreements marks a major milestone in the transition process that will support both Chevron and PTTEP ED’s ongoing activities. They will enable PTTEP ED to enter Erawan’s operating area to conduct production-related works ahead of PTTEP ED’s operatorship in April 2022, solidify cooperation between Chevron and PTTEP ED on activities in relation to the transfer of Erawan operations, and enable Chevron to re-enter Erawan’s area after the concession expiry to complete ongoing decommissioning activities, consistent with the terms of the concession agreements.
Chatit Huayhongtong, president of Chevron Thailand Exploration and Production, Ltd., spoke of this important milestone, saying that “I have been looking forward to signing this package of agreements because Chevron Thailand is committed to the safe transition of Erawan in April 2022. Our people have worked collaboratively with PTTEP ED as well as the Department of Mineral Fuels to prepare the transfer of operatorship. I am pleased the transition process continues to progress following multiple agreements with PTTEP ED to facilitate the transition, provided site access, enabled inspections and shared important data. The signing ceremony of the Site Access Agreement No 2, Operations Transfer Agreement and Asset Retirement Access Agreement today is a further testament to our commitment and cooperation between all parties.”
Chatit added that “Transferring this asset is a complex task and we have often gone beyond our obligations in the concession agreement to achieve the goal of a safe transition of Erawan. We remain committed to providing safe, and reliable and ever cleaner energy to the Kingdom of Thailand while seeking new opportunities that support the energy transition needs of the country in the future.”
Although Chevron is under no obligation to permit early access, the company has previously provided PTTEP ED access to the site to facilitate survey and other related work after both parties reached the first Site Access Agreement (SAA1) in 2019. Since the signing, progress has been continually and safely made on activities listed under the SAA1, which are expected to be completed in January 2022. In addition, Chevron has continued to engage PTTEP ED to carry out transition works including offshore facility inspection, information sharing and data transfer as well as the design of emergency response plans, manpower plans, and site familiarization plans. These activities are all integral to achieving the objective of a safe transition of Erawan in April 2022.