Dept of Mineral Fuels clarifies bidding terms of petroleum exploration rights in Gulf of Thailand

 

 

BANGKOK, 4th June 2018 (NNT) - The Department of Mineral Fuels is meeting with businesses to clarify the terms and conditions of the auctioning of petroleum exploration and production rights in the Gulf of Thailand with an emphasis on the production sharing contract that will be used. 

The Department of Mineral Fuels is holding a bidder conference for five businesses that have passed the preliminary qualification round for exploration and production rights in the Gulf of Thailand zones g 1/61 and g 2/61, also known as the Erawan and Bongkot fields.

 

The conference aims to familiarize bidders with the auction conditions, the bidding model of the production sharing contract, technical overviews of the exploration zones, and provide an opportunity for businesses to comment on and inquire about the auction.

 

Qualifying private sector entities must submit a technical and benefits proposal to the Department of Mineral Fuels by September 25 this year. 

Minister of Energy Siri Jirapongphan said today the qualification round was conducted in a transparent manner and resulted in enough candidates to promote competition.

 

He said that key issues that need to be addressed to the bidders are the use of the production sharing contract in the auctioning system, a minimum production requirement of 700 million cubic feet per day, and a clear division of assets between old and new concessionaires.

 

-- nnt 2018-06-04

8 minutes ago, webfact said:

The Department of Mineral Fuels is meeting with businesses to clarify the terms and conditions of the auctioning of petroleum exploration and production rights in the Gulf of Thailand

Condition number 1: Only our mates need apply.

World wide same.

Somchai go call our friends at Alibaba!

On 6/4/2018 at 3:48 PM, webfact said:

key issues that need to be addressed to the bidders are the use of the production sharing contract in the auctioning system

I'm not sure that the government has carefully examined the pros and cons in a Production Sharing Contract vs a Concession Contract. I've not seen any published debates examining the differences for Thailand. Coordinator Ittabul On-wongsa of the People’s Network for Energy Reform and other NGOs successfully lobbied the NLA for the use of the PSC method. 

http://www.nationmultimedia.com/business/NGO-pushes-for-production-sharing-in-oil-explorati-30258755.html

Who is the PNER that it had such connection with the junta-appointed NLA?

According to the Civil Court it acted in coordination with the PDRC street protests in 2014 to occupy and blockade the Energy Complex Building next to PTT headquarters.
 

A PSC will bind the government for many years without changing tax and regulation as resources can be extracted and generate profits. If the government or political climate changes, the terms of the PSC cannot be changed to reflect that State's new priorities unless a "legal regime" is created that allows the state the flexibility to modify the terms of the contract. Energy Law Journal

http://myenergylaw.blogspot.com/2008/12/production-sharing-contract-comparison.html

A PSC is a much more complex contract than a concession contract that requires substantial expertise and experience. PSC has been used by net energy exporter Indonesia but in 2017 begun to rethink the terms of its PSC to better attract foreign investment.

https://www.out-law.com/en/articles/2017/may/rethink-of-oil-and-gas-production-sharing-contract-regime-in-indonesia-might-be-needed-to-spur-investment-says-expert/

Where is Thailand's expertise, especially that's not in a conflict of interest with the Prayut government?