May 5--Domestic crude oil production is expected to rise to meet the target at 250,000 barrels a day this year, according to Kurujit Nakornthap, the director-general of the Mineral Fuels Department.

In an attempt to cut the country's reliance on imported oil, the department has accelerated its licensing of exploration and production companies to explore in Thailand over the past several years.

It reported total production from offshore and onshore fields rose by 14 percent year-on-year to 247,000 barrels a day in March.

Of the output, 11 crude oil fields had a capacity of 157,000 barrels daily, up from 140,000 a year earlier. The rest was condensate from six fields, which rose to 90,000 barrels from 79,000 barrels a day.

The department expects that E&P companies that received licences in 2006 and 2007, which are now at the exploration stage, will soon discover some petroleum fields that are commercially viable, even though global oil prices are declining, he said.

Major crude production fields include Chevron's Erawan and Thantawan fields at 84,713 barrels daily, PTT Exploration and Production's Sirikit (21,277 barrels) and US-based Pearl Oil's Jasmine and Ban Yen fields (21,008 barrels a day).

Major condensate sites are Chevron's Erawan and Pailin fields (52,590 barrels), PTTEP's Sirikit (21,277 barrels) and Hess (Thailand) with 196 barrels.

Mr Kurujit said the government needed to keep seeking new resources for self-sufficiency, given that domestic refined-oil demand is about 683,000 barrels a day, more than 80 percent of the total output of 835,600 barrels daily last year. The rest of the refined product output was exported.

He expects to see E&P companies to invest as much as 140 billion baht in petroleum activities, mostly involving major operators such as Chevron and PTTEP.

The department is currently awaiting discovery result from various fields. They include the Kalasin field of US-based Tatex Thailand LLC; new fields of Chevron, Nu Coastal and Hess Co, India-based Adani Welspun Exploration Ltd in Buri Ram and Canada-based Pan Orient Resources Thailand in the L44/43 block in Phetchabun.

He said revenue from petroleum royalty fees in this fiscal year would drop to below 40 billion baht from 49 billion the year before, due mainly to declining oil prices and flat growth in natural gas demand at 3,600 million cubic feet per day.

Petroleum royalty fees are the fourth-largest source of state revenue following collections by the Revenue, Excise and Customs departments.

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