Oil & Gas
The Group manages a portfolio of oil and gas investments with its core investment located in Thailand. Amid the challenging business environment and relatively low oil prices, the Group took the prudent approach to record a full impairment on its investments in non-core and non-performing assets in the other regions in the last few years.
Thailand Onshore Oil Concessions
Loyz Thailand Pte Ltd (“Loyz Thailand”), a wholly-owned subsidiary of the Group holds a 20% participating interest in three producing concessions – SW1, L44/43, and L33/43 (the “Thailand onshore oil concessions”) located at Phetchabun Basin, which currently generates a steady income stream from its existing oil-producing wells.
The production license for the SW1 concession was renewed for another 10 years from July 2016, while production licenses for L44/43 and L33/43 concessions will expire in 2032. Currently, there are thirteen production licenses covering an area of 124.7 square kilometres under these concessions.
The Group actively manages the oil concessions via a Joint Operation with its partners. Substantial cost optimisation efforts have resulted in much lower operating costs over the last few years. With oil prices recovering, the Group will continue to develop and harness the potential of the Thailand onshore oil concessions. This asset holds substantial proven reserves for development as well as significant potential for further exploration, promising value enhancement and sustainable long-term growth.