Exploration unfazed by lower crude price

Exploration unfazed by lower crude price

The 21st bidding round for oil and gas exploration licences remains attractive to many investors despite the global crude price's decline to US$60 a barrel, says Energy Minister Narongchai Akrasanee.

This PTT Exploration and Production oil rig off Chumphon province was later relocated due to falling output. The Energy Ministry is confident that bids for oil and gas exploration licences remain attractive to investors despite the slump in crude prices. AMNART THONGDEE

Bidders can submit proposals from next month until the end of February.

After receiving applications, the petroleum committee will take a few months to consider and approve licences.

Mr Narongchai voiced confidence that domestic and foreign companies would take part in the bidding despite postponements and opposition from activists.

"If licences can be provided next month, it will take seven years to see new production start, so the declining oil price will not directly affect bidding sentiment at the moment," he said.

A total of 29 blocks will go up for bid, with 23 onshore and the rest in the Gulf of Thailand.

The Northeast has become a target for new exploration after decades of offshore focus.

"Some onshore areas require drilling to a depth of three kilometres, so new technology will be needed for the search," Mr Narongchai said.

Including the Malaysia-Thailand Joint Development Area in its figures, the Mineral Fuels Department reports 8.41 trillion cubic feet of proven gas reserves and 461 million barrels of crude oil.

Considering present demand for oil and gas, the reserves could reasonably serve the domestic market for seven years.

Department director-general Puangthip Silpasart said proven gas reserves in Thailand had gradually decreased from 10.7 trillion cu f in 2006.

For all 29 blocks to be drilled would require 5 billion baht, she said.

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