5 firms pick up bid papers
The Mineral Fuels Department can reveal that five companies have already collected application documents for the upcoming auction of the Erawan and Bongkot gas blocks, says director-general Veerasak Pungrassamee.
The department announced the terms of reference (ToR) for the two blocks, Erawan (G 1/61) and Bongkot (G 2/61), to attract interested investors on April 24. Policymakers designed two production-sharing contracts (PSCs), shifting away from past concession models.
As of yesterday, five firms had picked up applications: the United Arab Emirates' Mubadala Petroleum Co; US-based Chevron Thailand Exploration & Production Ltd; Japan's Mitsui Oil Exploration Co; France's Total E&P Thailand; and Thailand's PTT Exploration and Production Plc (PTTEP).
The concessions for the Erawan and Bongkot gas blocks are due to expire in 2022 and 2023, respectively, and are operated by Chevron and PTTEP.
Erawan and Bongkot combined produce an average of 2.11 billion standard cubic feet per day, contributing up to 75% of the gas production from the Gulf of Thailand.
Preliminary qualifiers will be shortlisted and announced by May, and each qualifier must have experience in petroleum E&P in the sea, as well as paid-up capital from the parent firm of at least US$4 billion for Erawan and $2 billion for Bongkot.
The department will allow participating bidders four months to pass preliminary qualifications by making information about the gas blocks available before auction proposals are due to be filed in late September.
The department will take about 2½ months to consider the proposals.