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January 27, 2025

Thailand Opens 25th Bidding Round for Oil Exploration and Production

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Thailand’s Ministry of Energy (MOE) has announced the launch of the 25th bidding round for petroleum exploration and production. This round offers nine greenfield onshore blocks—seven in northeastern Thailand and two in central Thailand—encompassing over 33,000 km². The bids can be submitted from July 1 to July 16, 2025.

The sizes and locations of these blocks are:

  • Northeast Thailand
    • Block L1/66: 3,223.51 km² (Khon Kaen, Nong Bua Lam Phu, Udon Thani)
    • Block L2/66: 3,917.03 km² (Kalasin, Sakon Nakhon, Udon Thani)
    • Block L3/66: 3,918.22 km² (Kalasin, Khon Kaen, Maha Sarakham, Udon Thani)
    • Block L4/66: 3,656.65 km² (Amnat Charoen, Mukdahan, Nakhon Phanom, Yasothon)
    • Block L5/66: 3,436.01 km² (Chaiyaphum, Khon Kaen, Nakhon Ratchasima)
    • Block L7/66: 3,438.51 km² (Buri Ram, Maha Sarakham, Nakhon Ratchasima, Roi Et, Surin, Khon Kaen)
    • Block L9/66: 3,885.44 km² (Nakhon Ratchasima)
  • Central Thailand
    • Block L6/66: 3,966.86 km² (Chaiyaphum, Lop Buri, Phetchabun)
    • Block L8/66: 3,957.41 km² (Kanchanaburi, Nakhon Pathom, Ratchaburi, Suphan Buri)

Bidding Process

Interested companies must submit their bids to the Department of Mineral Fuels (DMF) between July 1 and July 16, 2025. Bids should include:

  • Application form (ChorThor/Por1)
  • Proof of eligibility: Corporate documentation, audited financial statements, and proof of resources
  • Technical and commercial proposals: Exploration plans, geological surveys, financial and work commitments, and special benefits such as signing bonuses of at least USD 100,000.

There is a nonrefundable THB 50,000 application fee per block, and applicants must provide a bid bond of THB 3 million per block via an unconditional bank guarantee from a commercial bank with branches in Thailand, valid for at least one year from the bidding submission date. The guarantee will be returned to unsuccessful bidders upon request and to successful bidders upon the signing of the concession agreement.

Eligibility

Bidders must meet the following main eligibility criteria:

  1. Bidders must be limited companies with the following qualifications:
    • The company must have the objective of carrying out petroleum exploration and production;
    • The company must never have abandoned their operations under a concession or been subject to revocation of a concession in Thailand; and
    • None of the company’s shareholders, directors, or authorized directors can be listed as having abandoned operations under a concession or having been subject to revocation of a concession in Thailand.
  2. Bidders must command sufficient capital, machinery, equipment, tools, specialists, and other resources necessary for petroleum exploration and production. This includes having:
    • For at least two of the last three years, shareholder equity of at least THB 100 million and a current ratio of at least 1.00; and
    • Proven resources and experience in petroleum exploration and production over the last five years.

If the bidder does not possess all the qualifications outlined in item 2 above, the bidder must have another government-accredited company with a capital or management relationship that meets these qualifications. This company must guarantee that it will provide the bidder with all necessary capital, machinery, equipment, tools, and specialists for petroleum exploration and production.

If a bidder comprises more than one company, each of the companies must possess the qualifications outlined in item 2 above. Foreign companies may apply, provided that all documents are notarized by a foreign notary public or authenticated by the relevant foreign embassy or consulate in Thailand, or by a Thai embassy or consulate abroad.

Evaluation Criteria

Applications from qualified bidders will be evaluated using a points-based system that assesses the following:

  • Petroleum exploration program (80 points), comprising the exploration commitment for the first period (60 points) and the second period (20 points)
  • Special benefits (20 points)

The bidder with the highest scores will be selected as the concessionaire.

Legal and Contractual Framework

Successful bidders will operate under a concession scheme with a 6-year exploration period (extendable by 3 years) and a 20-year production period (extendable by 10 years). However, concession areas may be located on state-owned land, and if the use of this land is not permitted by any applicable law at present or in the future, the concessionaire must accept that it has no right to use the land for operations.

Outlook

The 25th bid round represents a significant opportunity for energy companies to invest in Thailand’s petroleum sector given the expiration of several petroleum blocks in the following years. The new petroleum blocks offered in this bid round are crucial for bolstering Thailand’s domestic petroleum production capabilities. They will play a vital role in reducing dependency on imported oil, stabilizing energy costs, and securing a steady supply of petroleum resources as they will enhance the country’s strategic petroleum reserves to ensure energy security amid global oil price volatility and geopolitical tensions.

For more details on the 25th bidding round, or on any aspect of energy activities in Thailand, please contact Supasit Boonsanong at [email protected], Charuwan Charoonchitsathian at [email protected], Kobchai Nitungkorn at [email protected], or Thananya Pholchaniko at [email protected].

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