BANGKOK, 31 May 2015 – Bangchak Petroleum Plc (BCP) has set aside a THB20,000 million budget for participating in a joint venture in Exploration and Production (E&P) business with Australia’s Nido Petroleum Limited, Bangchak president Chaiwat Kovavisarach revealed on Sunday.
Nido Petroleum Limited owns 55% of shares in Galoc Oil Field which has capacity to produce 7,000 barrels of oil per day. Currently, it is running another oil rig plan to boost its oil reserves by developing West Linapacan Oil Fields in the Philippines, in parallel with trying to win concession bidding in other oil sources in the Philippines and Indonesia.
Mr.Chaiwat said that BCP is currently a shareholder of NIDO. However, further joint venture would increase Bangchak income before paying taxes by 20%-25%. In the future, NIDO would be able to directly supply oil to Bangchak, he added.
Speaking about the 21st Petroleum Concession Bidding Round, Mr.Chaiwat said that the company is ready for the auction as soon as the government has clear policy.
As for its investment in Lithium Battery sector in the U.S., Bangchak has already invested US$1.5 million for the first phase of investment in the Canada-registered Western Lithium Corporation (WLC). Another sum of US$3.5 million will be invested in the second phase.
“The decision to invest in the sector came in the wake of a higher demand for Lithium battery, and the company anticipated that the demand will increase as battery might be main energy for vehicles in the future,” said Mr.Chaiwat.