The cabinet has granted oil and gas exploration concessions to two companies that won the Round 25 onshore petroleum auction, aiming to secure domestic energy supply as Thailand’s natural reserves continue to dwindle.
Round 25 was previously stalled, with the results delayed due to last year’s parliamentary dissolution and the slow pace of the new government.
The concession approval came as energy companies gathered for the four-day Gastech exhibition in Bangkok, slated to end on Thursday.
The concessions for areas in the northeastern and central regions were awarded to PTTEP International Ltd and Pan Orient Energy (Siam), in partnership with CanAsia Energy Corp, said Warakorn Brahmopala, director-general of the Department of Mineral Fuels (DMF).
PTTEP International Ltd plans to explore blocks L1/66 and L3/66, while Pan Orient Energy (Siam), in partnership with CanAsia Energy Corp, will explore block L8/66.
Round 25 attracted eight proposals from five companies for four exploration blocks.
Mr Warakorn said the DMF assessed all bids in accordance with legal requirements, using a transparent, merit-based selection process, with national interests serving as the overriding consideration.
“The selection of these concessionaires will unlock petroleum exploration and production activities that could lead to new discoveries, enhancing Thailand’s energy self-reliance, reducing dependence on imported energy and sustaining national energy security,” he said.
Blocks L1/66 and L3/66 hold strategic significance as commercially viable discoveries would supply fuel to the Nam Phong power plant, a critical facility in the Northeast, reinforcing energy stability in the area, said Mr Warakorn.
Exploration activities will immediately stimulate local economies and employment, he noted.
If commercial petroleum production materialises, the government would benefit from royalties and petroleum taxes, while the activity would create stable jobs for Thai workers and drive growth in downstream sectors such as hospitality, restaurants and transport, said Mr Warakorn.
Onshore exploration block L6/66 remains at the proposal stage and will be submitted to the cabinet for a separate decision on its winning bidder at a later date, the DMF noted.
In a parallel development, authorities confirmed that the Round 26 offshore auction in the Andaman Sea is being prepared for cabinet consideration.