Thailand's 21st round of oil and gas exploration and production (E&P) is likely to be delayed from next month due to a complicated revision process of relevant petroleum laws, says newly appointed energy permanent secretary Kurujit Nakornthap.
All 29 onshore and offshore blocks nationwide were designed for E&P firms, which were to be granted licences from 2008 onwards. The process was delayed after protests from non-governmental organisations.
The government resumed accepting applications for licences last October, but renewed protests suspended the process again.
"The Office of the Council of State is still considering whether to proceed with product-sharing agreements or a concession system," Mr Kurujit said.
Kurujit: Reserves depleting rapidly
He said Thailand's total oil and gas reserves had been depleting rapidly in recent years.
Proven reserves estimated to last 12 years are now estimated at six and a half years due to higher demand.
The country's gas demand jumped from 4 billion cubic feet a day two years ago to above 5 billion cfpd, while no new oil and gas resources have been found in eight years.
From the 20th round in 2007, only one block out of 28 realised commercial production, generating just 50 billion cfpd of gas.
From the 19th round in 2005, four out of 82 blocks realised commercial production.
The government also needs to take action on the Erawan blocks of Chevron (Thailand) and the Bongkot blocks of PTT Exploration and Production Plc — concessions due to end in 2022 and 2023, respectively — deciding whether to go on with production, quit the projects or open them for new bids.
The two firms supply 45% of Thailand's total gas demand, with Erawan producing 1.36 billion cfpd and Bongkot 859 million cfpd.
The concessions were granted in 1972 and extended in 2012-13 for an additional 10 years.
Energy policymakers have assigned a new committee to study possible measures for dealing with the Erawan and Bongkot blocks.
The Mineral Fuels Department is evaluating the assets of gas reserves, inventories, contingent resources and prospective resources. A new business model for when the Erawan and Bongkot concessions expire is expected to be settled upon within a year.
Deputy energy permanent secretary Twarath Sutabutr said renewable energy support might not cover all areas in Thailand, as high-voltage transmission lines whose capacity could connect to producers covered only the central region.
Energy policymakers are discussing installation of more transmission lines to cover the Northeast.