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Salamander, Origin agree on South-East Asia farm-out
Salamander Energy Plc, a UK explorer with operations in southeast Asia, has farmed out interests in five exploration blocks in northeast Thailand, Laos and Vietnam to Origin Energy Ltd.
Origin, based in Sydney, will spend $50 million to fund appraisal of the five blocks and an additional $40 million if exploration is successful, London-based Salamander said in a statement today. Drilling on all five blocks will be carried out next year, the explorer said.
“This reduces the financial risk,” Chief Executive Officer James Menzies said in a telephone interview today. Salamander may pursue other farm-ins or expand horizontal drilling operations at its Bualuang field in the Gulf of Thailand, he said.
Northern Thailand may need an additional 1,500 megawatts of power capacity by 2012, providing a ready market for regional gas discoveries, according to Salamander. PTT Pcl, Thailand’s biggest energy company, said last month that it would spend about $4.2 billion over the next five years on its gas business, including a pipeline and LNG terminal, to cater for growing domestic demand.
THanhnien, Bloomberg
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