Thailand has granted two onshore exploration licenses and is preparing another offshore round as it seeks to reduce exposure to imported fuels, the Bangkok Post reported.
At a ceremony in Khon Kaen, PTTEP International Ltd received exploration rights to blocks L1/66 and L3/66, according to the Bangkok Post. The company is a subsidiary of PTT Exploration and Production Plc, and the blocks are near the Sin Phuhom natural gas field. The ministry expects seismic surveys and test drilling to get underway soon.
Energy Minister Akanat Promphan told the Bangkok Post that overseas sources provide Thailand with as much as 90% of its crude oil and about 46% of its natural gas. He said that reliance leaves the country exposed to global price shifts and competition for fuel supplies. Akanat said more domestic production could cushion consumers, industries and the wider economy against external disruptions.
The licensed areas are near producing gas facilities and pipelines, the Bangkok Post reported. The ministry said access to existing infrastructure could speed development after a viable discovery and limit the need for major new construction, while supporting regional supplies and national energy security.
Thailand is also preparing its 26th petroleum bidding round in a 26,223-square-kilometer area of the Andaman Sea, the Bangkok Post reported. Officials point to nearby gas discoveries by international operators; the report put the average reserve estimate for those neighboring blocks at 7 trillion cubic feet.
Akanat said deep-water projects face high costs and technical hurdles. The ministry intends to ask the Cabinet to approve updated fiscal terms, including changes to benefit-sharing calculations and tax incentives, the Bangkok Post reported. The measures are intended to improve project economics and encourage international energy companies to drill in Thai waters.
