The Mineral Fuels Department is likely to be more flexible with regulations in the 21st round of exploration bidding this year, as bidders for some gas and oil blocks may be allowed to participate under a production-sharing contract (PSC) system.
The PSC system has been proposed as an alternative by the National Reform Council and could result in sharing profits with the government from petroleum production rather than sticking to the Thailand 3 Plus concession system that has been in force since 1989.
However, it will take time for the government and investors to negotiate before deciding on which system is the most suitable.
Department director-general Puangthip Silpasart said during the exploration period, the government would discuss with investors which system was preferable.
Three offshore blocks are being considered for the more flexible regulation — G3/57, G5/57 and G6/57.
"During exploration, the Mineral Fuels Department will negotiate with investors in these three blocks about whether to operate under the Thailand 3 Plus system or the PSC system after passing the exploration process and entering production," Mrs Puangthip said.
The 21st round of petroleum and gas exploration covers 29 gas and oil resource blocks, of which 23 are offshore and six onshore.
The proposal for a more flexible system comes after non-governmental organisations strongly opposed the existing Thailand 3 Plus system, saying it gave only a small proportion of profits to the government.
They are urging a switch to the PSC system.
In the meantime, the government plans to include the PSC system in the Petroleum Act for use in future exploration.
Investors and the government would have as long as four or five years to negotiate the profit proportion before exploration is finished.
The department selected these three petroleum blocks for this round due to tentative data pointing to the possibility of gas being present.
Bidding will end on Feb 18, and participants include PTT Exploration and Production Plc, Mitsubishi Oil Exploration, Chevron, Salamander and CEC International.