Thailand to announce winners for Erawan, Bongkot gas fields in Feb 2018

Thailand to announce winners for Erawan, Bongkot gas fields in Feb 2018

Thailand will announce the winning bids to takeover the concessions to
operate the Erawan and Bongkot offshore natural gas fields in the Gulf of
Thailand in February next year, the energy ministry said on Thursday.

The Erawan gas concession, operated by Chevron Corp, and the Bongkot gas
concession, operated by state-backed PTT Exploration and Production PCL,
will expire in 2022 and 2023, respectively.

The areas have combined output of 2.2 billion cubic feet a day, about 76
percent of output from the Gulf of Thailand.

The terms for the auction will be announced in July or August this year,
Veerasak Pungrassamee, director of the energy ministry's mineral fuels
department, told a press conference. "Everything is going according to the
ministry's planned timeframe," Veerasak said.

Veerasak did not say when the auctions would be held. Energy Minister
Anantaporn Kanjanarat said earlier this year the auctions would be held in
December.

An amendment to a petroleum law that will give companies more options on how
to manage exploration and production operations will come into effect on
Friday.

The amendment, which was approved in March, gives companies the option of
striking production sharing agreements (PSA) or service contracts with the
government.

Oil and gas companies currently operate fields on a concession basis, paying
taxes and royalties on profits.

The energy ministry will next work on laws that set the terms for production
sharing agreements and service contracts, Veerasak said.

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Link to Original Article:
http://in.reuters.com/article/thailand-energy-auction-idINL3N1JJ38J

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com