Thailand delays oil and gas contract auction to 2018

Thailand delays oil and gas contract auction to 2018

The military government of Thailand has delayed a planned auction for
expiring oil and gas concessions held by national oil company PTT
Exploration and
Production (PTTEP) and Chevron from 2017 to 2018, due to delays in the
adoption of the Petroleum Act. When the auction was announced in August
2016, Thailand planned to open bids for the contracts in March 2017 and to
complete the auction in September 2016. The government now plans to open
bids in 2017 and to complete the auction in 2018.

The concessions for the Erawan gas field operated by Chevron and the Bongkot
gas field operated by PTTEP are due to expire in 2022 and 2023 and currently
produce 2.2 bcf/d (62 mcm/d, i.e. nearly 23 bcm/year) of gas, which
corresponds to more than 3/4 of gas production in the Gulf of Thailand. If
the auction fails to attract bidders, the government will negotiate
extensions with the existing holders of the concessions (Chevron and PTTEP
will be allowed to bid in the auction).

Thailand is currently amending its energy law, to add production sharing
contract terms to the existing concession contracts. The amendment is
expected to be completed by 2017. An auction for 29 new onshore and offshore
oil concessions, initially expected in 2011, is also scheduled in late 2017.


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Link to Original Article:
http://www.enerdata.net/enerdatauk/press-and-publication/energy-news-001/tha
iland-delays-oil-and-gas-contract-auction-2018_39077.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com