Thailand's petroleum giant, PTT Public Company Limited (ITT), on Thursday clinched a deal to purchase crude oil from the Jasmine oilfield of Pearl Oil Co. ( Thailand) in a bid to reduce oil imports amid soaring fuel prices.

The agreement was signed by PTT's President Prasert Bunsumpun and Keeth Cameron, President and CEO of Pearl Energy Co., the parent of Pearl Oil, under the witness of Energy Minister Viset Choopiban.

According to the contract, PTT will buy a whole amount of crude oil produced at the Jasmine oilfield operated by Pearl Oil, which currently has a daily production capacity of around 10,000 barrels. The purchase totals more than 9 billion baht (225 million US dollars) a year.

The PTT had already purchased more than 2 million barrels from the oilfield since it began production in 2005, Prasert was quoted by the Thai News Agency as saying.

The crude oil, when refined, increases the supply of diesel and bunker oil to meet local demand.

Prasert said the signing of the contract would lead to a reduction in the oil imports and would also help ease impacts from hefty oil prices on the country. More importantly, it will help add value of the product and maximize the utilization of local resources.

Besides Jasmine oilfield, PTT also planned to buy fuel from other oilfields in the country, particularly the Shevron oilfield which has a daily production capacity of 40,000-50,000 barrels.

The purchase of crude oil from the oilfields would enable local traders to reduce the oil import value by 10 percent from that of last year as targeted by the government, said Prasert.

Source: Xinhua