press release Chevron activates Transfer Support Center and signs four agreements with PTTEP ED to prepare for safe transfer of Erawan

Chatit Huayhongtong (center), President, Chevron Thailand Exploration and Production, Ltd. (Chevron) at the signing ceremony of the Deed of Novation and Amendment of E2FSO Bareboat Charterparty, PFSO G1/61 Access and Service Agreement, Joint Utilization Facilities Agreement, and Operation and Maintenance Support Agreement aimed at achieving the objective of a safe transition of Erawan to PTTEP ED in April 2022.

Chevron Thailand Exploration and Production, Ltd. (Chevron) confirms the readiness for the Erawan handover on April 23, 2022. The company has set up a Transfer Support Center to enable a smooth and safe transition, as well as has signed the Deed of Novation and Amendment of Erawan 2 Floating Storage and Offloading Vessel (E2FSO) Bareboat Charterparty, Pattani Floating Storage and Offloading Vessel (PFSO) G1/61 Access and Service Agreement, Joint Utilization Facilities Agreement (JUFA), and Operation and Maintenance Support Agreement with PTTEP Energy Development Company Limited (PTTEP ED). The agreements represent key progress of the preparation work undertaken to safely transfer operatorship to PTTEP ED on April 23, 2022, and support the mission of both parties to strengthen Thailand's energy security. After the transition, Erawan, which is currently operated by Chevron under the concession, will transfer its operatorship to PTTEP ED under the Production Sharing Contract (PSC) as Exploration Block G1/61.

As a prudent operator, Chevron has met all its obligations under the concession agreement, these range from the transition plans, data transfer, manpower management to equipment preparations. The company has completed the transition plans which have undergone reviews and checks from all related groups within Chevron. As part of the preparations numerous “desk top” exercises have been performed with PTTEP ED and the DMF to test handover readiness, these included emergency response drills.

Chevron’s Transfer Support Center, located at the head office in Bangkok, will operate from April 18-24, 2022, to support the safe handover operations, this support center is a collaborative effort with PTTEP ED and the DMF. In addition, both DMF and PTTEP ED personal are currently offshore to help enable a smooth transition. Chevron is also collaborating with the DMF in supporting the operations of the War Room, a joint support center set up by the DMF together with PTTEP ED and other related parties, during 6 p.m. of April 23, 2022, until 3 a.m. of April 24, 2022

This set of agreements marks critical stages of the goal of a safe transition of Erawan as well as allow both parties to continue their operations safely and reliably following the transition period. The close collaboration between Chevron and PTTEP ED in managing E2FSO and PFSO which are essential infrastructures used for storing energy supply from various fields in the Gulf of Thailand especially for Block G1/61, optimizing the use of offshore facilities, and supporting operation and maintenance, all detailed in the signed agreements, to support safe and continuous petroleum production in the Gulf of Thailand by both parties.

Chatit Huayhongtong, president of Chevron Thailand Exploration and Production, Ltd., spoke of this important milestone, saying that “we are committed to a safe transition of assets in April 2022. Our people have worked collaboratively with PTTEP ED as well as the DMF to prepare the transfer of operatorship. Chevron is now ready for a safe and reliable handover on April 23, 2022. The signing of the agreements is a further testament to our commitment and cooperation between all parties over the course of this process. On behalf of Chevron Thailand, I would like to extend my thanks to the DMF and PTTEP ED for joining forces with us during the transition period to achieve the goal of a safe transition of Erawan.”

Chatit added that “Erawan is Thailand’s first natural gas field and has played a critical role in supporting this country’s economic growth development over several decades. It has enabled Thailand to increase its energy independence. Erawan also acted as the offshore school ground that cultivates many homegrown talents for Thailand’s petroleum industry. Erawan has built a proud and lasting legacy for all of us at Chevron that has been operating the field for over 40 years, taking part in driving economic growth nationwide as well as cultivating homegrown energy professionals and laying a solid foundation for the future of the petroleum industry in Thailand. Erawan’s solid performance would not have been possible without the hard work and commitment of all former and current Chevron employees and contractors for their dedication to safely produce energy for the country for more than four decades. After the transition, 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 needs of the country in the future.”

Despite the complex challenges presented by the transition, over the years the company has continued to work collaboratively with PTTEP ED and the DMF to support the transition. The transition process continues to progress following significant multiple agreements with PTTEP ED to facilitate the transition in order to achieve the objective of a safe transition of Erawan, consistent with the terms of our concession agreements, as well as strengthen Thailand’s energy security in the future.

The transition process continues to progress following significant multiple agreements with PTTEP ED to facilitate the transition in order to achieve the objective of a safe transition of Erawan