The petroleum engineering service provider Lamprell Energy expects its Thai unit to earn at least one billion baht in the first year of operations as its regional centre to expand business from the Middle East to the Far East.

With an initial investment of about 200 million baht, Lamprell Asia has set up its facility in Sattahip, Chon Buri, to provide services including jack-up and land rig refurbishment, upgrades, conversions, repairs, and fabrication of offshore equipment.

The second-phase expansion would start within this year with the third phase to follow, bringing UAE-based Lamprell's total investment to about 500 million baht. It plans to double space of the existing facility to 100,000 square metres in the final stage.

''We chose Thailand because it is the centre of the region and we service clients in Singapore, Malaysia, Brunei, Vietnam, the Philippines and India,'' said Kevin Isles, vice-president of the Sharjah, Hamriyah and Thailand facility.

''The oil and gas business in the Asian region has recorded massive growth in the past four to five years. We expect the market to recover from the current financial crisis and come back very strongly again in 2010.''

Mr Isles said Thailand had potential to help Lamprell expand sales to $100 million in the future. Currently, it employs 85 Thai staff with a target to increase to 1,000.

''We have been in discussions with PTT Exploration and Production about upgrading and expanding the facilities in the Gulf of Thailand. As well, we are talking to Australian companies and they are very interested in the services we offer here,'' he said.

Lamprell, with total revenue of $700 million last year, has formed a partnership with Thailand-based Triconeer Co to set up operations here.

Thirapong Varangoon, managing director of Triconeer, said that so far Lamprell Asia had obtained contracts with two clients in Thailand, Trans Ocean and Atwood, the latter of which could generate revenue of 200 million baht.

Most companies in the past have used petroleum services in Singapore and Indonesia because there was no local operator in Thailand, even though the gas is produced in the Gulf of Thailand, said Mr Thirapong.

''We expect business to grow sub stantially in the latter half of this year as crude prices have picked up from the low of $30-plus last year to $60 now. This would make petroleum companies start to upgrade their facilities to cope with the industry's uptrend,'' he added.

Krairit Nilkuha, deputy permanent secretary of the Energy Ministry, said the growing oil and gas industry and demand in Thailand had attracted international players such as Lamprell to the kingdom.

About 500 new petroleum wells are being drilled each year and 25 platforms installed in Thailand, with gas production reaching 2.7 billion cubic feet per day, noted Mr Krairit.