You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

August 19, 2020

PTIT Focus: Thailand Allocates Petroleum Exploration Blocks for 23rd Round of Bidding

Subscribe to Updates
Petroleum Institute of Thailand: PTIT Focus

On March 2, 2020, the Department of Mineral Fuels (DMF) issued its Notification Re: the Determination of Exploration Blocks for the Bidding for Petroleum Exploration and Production B.E. 2563 (2020). This notification, which repeals the Notification of the Department of Mineral Fuels Re: the Determination of Exploration Blocks for the Bidding for Petroleum Exploration and Production B.E. 2561 (2018), allocates the areas to be used as exploration blocks for the 23rd round of bidding for petroleum and exploration production. The three new exploration blocks, located in the Gulf of Thailand, are as follows:

  • Block G1/63, covering 8,197 km2
  • Block G2/63, covering 15,030 km2
  • Block G3/63, covering 11,646 km2 (divided into Areas A and B)

In total, the exploration blocks set by the DMF cover 34,873 square kilometers—a larger geographical area than allocated in prior petroleum exploration and production.

The bidding process for petroleum exploration and production in the three exploration blocks is expected to begin in early April 2020 with the DMF’s anticipated release of the terms of reference. In order to participate in the bidding process, private companies must first meet the requirements stipulated in the terms of reference and must have paid the participation fee. Companies may then submit their applications and related proposals, along with payment of the application fee and deposit of a bid bond. It is expected that private companies will have a few months to prepare their bids once the DMF announces the terms of reference.

Though the terms of reference have not yet been disclosed, the contract governing the three blocks is expected to be under the production sharing contracts (PSC) scheme. The Ministerial Regulation Prescribing the Form for Production Sharing Contracts B.E. 2561 (2018) sets out a model template for PSCs to be used for this exploration and production.

Interested parties should watch for the DMF to issue their final decision regarding the result of the bidding and the execution of the contracts within the first quarter of 2021.

 

This article first appeared in the November 2019 edition of PTIT Focus, the Petroleum Institute of Thailand’s monthly newsletter. The article was published in both English and Thai. 

Related Professionals

Industries

Energy

Location

RELATED INSIGHTS​ 

April 7, 2015
When the Thai government enacted the Private Investments in State Undertakings Act B.E. 2556 (2013) (PISUA)—a new law regulating public-private partnerships (PPPs) that was designed to streamline and clarify the PPP process and thereby boost private investment, especially in the infrastructure sector—measures were introduced to increase the effectiveness and transparency of the PPP process, something previously unseen in PISUA’s predecessor, the Private Participation in State Undertakings Act B.E. 2535 (1992) (PPSUA).
Read More
March 9, 2015
From the time the Royal Thai Armed Forces launched a coup d’état in May 2014 and Thailand’s reinstated military government embarked on an ambitious program to invigorate the country’s economy, numerous proposals have emerged to develop Thailand’s infrastructure, and especially, its inland transportation systems. Development of Thailand’s inland transportation systems is expected to improve the country’s logistics capabilities and help maintain a competitive advantage among the other ASEAN Member States.
Read More
January 7, 2015
Tilleke & Gibbins, in association with Lex Mundi, has published the latest edition of the Guide to Doing Business in Thailand. The guide provides a comprehensive overview of the legal and business environment for investors entering the Thai market. In particular, it covers topics such as the current political climate, investment incentives, financial facilities, exchange controls, import and export regulations, establishing and operating a business, labor and employment, tax, and immigration requirements.
Read More