Auction part of state efforts to boost domestic oil supply
PUBLISHED : 9 Feb 2024 at 04:00
A new auction for petroleum exploration and production in nine onshore blocks will be organised by the end of the year to support the state’s efforts to increase the domestic petroleum supply, according to the Department of Mineral Fuels.
The auction, also known as the Round 25 auction, will cover seven blocks in the Northeast and two in the Central region.
The move to expedite the auction was made alongside the decision to revive talks on the prospect of joint petroleum production with Cambodia in the overlapping claims area (OCA) in the Gulf of Thailand on Wednesday.
Exploration still needs to be commissioned to determine whether there is a significant oil and/or gas deposit which can be commercially extracted from both the nine onshore sites, as well as the OCA.
Once the plan to hold the auction is approved by Energy Minister Pirapan Salirathavibhaga, officials will invite energy companies to join the bidding process, said Warakorn Brahmopala, director-general of the Department of Mineral Fuels.
He expects the process to be finalised by the middle of the year.
Last year, the department awarded licences to explore and produce petroleum at three blocks in the Gulf to Chevron Thailand Exploration and Production Co and PTT Exploration and Production Plc (PTTEP), following the conclusion of Round 24 bidding, held in 2022.
In 2023, the total petroleum production in Thailand increased slightly by 1% year-on-year to 562,888 barrels of oil equivalent per day (BOED).
This figure comprises 70 BOED of crude oil, 75 BOED of oil condensates, and 2,400 million metric standard cubic feet of natural gas per day.
“Petroleum production in the country already passed its peak production period several years ago. We need new exploration and production,” said Mr Warakorn.