InfoQuest (March 5, 2020) -- Energy Minister Sonthirat Sonthisajirawong revealed that his ministry plans to open the 23rd oil exploration and production franchise application of the Gulf of Thailand in April 2020, with the aim of giving Thailand the opportunity to develop new oil resources to ensure that domestic oil production will not decline. Currently, the Department of Mineral Fuels is being engaged in such work as reviewing and determining the oil field location, the management system and the criteria and conditions for the new round of application for oil exploration and production franchise.
It is expected to take about a year to go through the process from publishing private sector research information to announcing the winning bidder.The contract with the winning bidder is expected to be signed in early 2021, with an initial investment of 1.5 billion baht and, if oil resources are discovered, an increase in investment in the domestic oil industry to 10 billion baht will be seen.
"The benefits go beyond providing guarantee for energy security. The project can also boost investment confidence, generate national revenue, create jobs for stabilizing employment and drive the growth in other related businesses, such as oil production platform construction, hotels and transportation," said Mr. Sonthirat when visiting Erawan gas field.
Mr. Sonthirat continued that Erawan gas field, operated by Chevron (Thailand) Limited. is Thailand's first gas field. It has brought huge benefits to the Thai people and the country, including providing guarantee for energy security, enhancing the country's economic power, promoting the development of related industrial chains, and creating jobs for stabilizing employment.
And more than 100 billion baht of franchise fees have been turned over to the state over the last 40 years, which have been then used as part of the national budget to develop infrastructure, utility systems and improve the quality of life for Thais.
At present, there are four natural gas fields in Erawan region including Erawan, Platong, Satun and Funan. In January 2020, the average production of natural gas reached up to 1.257 billion cubic feet per day, that of condensate oil was 44,519 barrels per day and that of crude oil was 27,324 barrels per day. The concession of Erawan gas field (Block 10, 11, 12 and 13) will expire in 2022, after which it will be jointly operated by PTTEP Energy Development Company Limited and MP G2 (Thailand) Limited who won the bidding in 2018, under an output-sharing contract.
Source: InfoQuest, by Wilawan Pongpitak / Rachada, translated by Xinhua Silk Road.
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