The military government of Thailand has delayed a planned auction for expiring oil and gas concessions held by national oil company PTT Exploration and Production (PTTEP) and Chevron from 2017 to 2018, due to delays in the adoption of the Petroleum Act. When the auction was announced in August 2016, Thailand planned to open bids for the contracts in March 2017 and to complete the auction in September 2016. The government now plans to open bids in 2017 and to complete the auction in 2018.
The concessions for the Erawan gas field operated by Chevron and the Bongkot gas field operated by PTTEP are due to expire in 2022 and 2023 and currently produce 2.2 bcf/d (62 mcm/d, i.e. nearly 23 bcm/year) of gas, which corresponds to more than 3/4 of gas production in the Gulf of Thailand. If the auction fails to attract bidders, the government will negotiate extensions with the existing holders of the concessions (Chevron and PTTEP will be allowed to bid in the auction).
Thailand is currently amending its energy law, to add production sharing contract terms to the existing concession contracts. The amendment is expected to be completed by 2017. An auction for 29 new onshore and offshore oil concessions, initially expected in 2011, is also scheduled in late 2017.