press release PSC for petroleum blocks in Gulf of Thailand signed, safeguarding Thailand’s long-term energy security
The Ministry of Energy's Department of Mineral Fuels (DMF) has signed a Production Sharing Contract (PSC) with each of the contractors who won the 24th Thailand Petroleum Bidding Round for the right to explore and produce petroleum under the PSC regime in three exploration blocks covering a total area of 30,000 square kilometers in the Gulf of Thailand. This opportunity has not been granted for any undiscovered sites for the past 16 years. As the blocks are in close proximity to the fields previously approved for petroleum production, as well as active petroleum-producing fields, the new petroleum exploration is likely to succeed, thereby contributing to Thailand’s long-term energy security.
30 May 2023 - Supattanapong Punmeechaow, Deputy Prime Minister and Minister of Energy; Sarawut Kaewtathip, Director-General, DMF; and executives of the Ministry of Energy participated in the signing ceremony of the PSCs with the companies awarded the right to petroleum exploration and production at three exploration blocks in the Gulf of Thailand following the 24th bidding round, in accordance with the cabinet resolution dated 7 March 2023 awarding PTTEP Energy Development Co., Ltd. (PTTEP ED) the right to be a Production Sharing Contractor of Blocks G1/65 and G3/65, spanning 20,133.87 square kilometers in total; and awarding Chevron Offshore (Thailand) Limited (COTL) the right to be a Production Sharing Contractor of Block G2/65, spanning 15,030.14 square kilometers.
“DMF’s principal mission is to regulate petroleum exploration and production and to seek fuel energy sources in the interest of Thailand’s energy security. As part of the strategic plan to ensure continuous provision of mineral fuels from domestic reserves, opening up the right to petroleum exploration and production is meant to increase the chances of discovering new petroleum reserves within the country. The signing of the PSCs today not only contributes to Thailand’s long-term energy security but also serves as a measure to drive and stimulate country’s economy through the downstream sectors of the petroleum industry. Those sectors include processing platform construction, restaurants, hospitality, and transportation.”
Ronnarong Chanleka, General Manager, COTL, said that “Chevron Offshore (Thailand) Limited is honored and pleased to gain the government’s trust to be a Production Sharing Contractor of Block G2/65, which led to the PSC signing ceremony today. With our cutting-edge technology, skilled workforce, and best practices from across global operations, we are ready to closely work with the Energy Ministry’s Department of Mineral Fuels (DMF) on efficient petroleum development from Block G2/65. Our purpose is to provide safe, reliable, and increasingly cleaner energy in order to strengthen Thailand's energy security, enhance economic growth, promote social prosperity, and ultimately propel Thailand towards becoming a low-carbon society in the long run.”
Granting the right to petroleum exploration and production this time around is going to bring over 1.5 billion baht in domestic investment value over the 6-year exploration period. This includes to signature bonuses, contributions to support petroleum development in Thailand, and so forth, totaling approximately 640 million baht. Once commercialization becomes viable, the exploration blocks will generate national revenue through royalties, petroleum income tax, and shared profits.
