Thailand to auction petroleum concessions held by Chevron, PTTEP

According to Thailand’s Energy Minister Anantaporn Kanjanarat, the government plans to auction petroleum concessions held by Chevron Corp. and state-owned PTT Exploration and Production Pcl (PTTEP).┬áThe concessions owned by Chevron and PTTEP have a combined production of 2.2bn cubic feet per day, or 76% of total output in the Gulf of Thailand.

Chevron’s Thai unit holds concessions to operate the Erawan gas field, while PTTEP operates the Bongkot gas field.

The concession period for the contracts would expire in 2022-2023, and the auction process was expected to be completed within a year.

In absence of interested bidders, the government would negotiate concession extensions with the existing holders. Separately, Chevron and PTTEP were allowed to bid during the current auction process.

The bidding is also pending an amendment of a new energy law, which will add production-sharing contract terms to existing concession contracts by which firms pay taxes and royalties. The amendment was expected to be completed within the next three or four months.

Source: Reuters