PTT Exploration and Production Plc (PTTEP), the SET-listed oil and gas drilling arm of national oil firm PTT Plc, is calling on the government to speed up auctions of the Bongkot and Erawan gas fields.
PTTEP, a gas production operator in Bongkot, aims to join the new auctions for Bongkot and Erawan.
The two gas fields' concessions will expire in 2022 and 2023, and policymakers have prepared for the renewal of concessions for exploration and production (E&P) activity after the upcoming auction, which had been postponed from 2013 to 2015.
The auctions were delayed further until the latest schedule of April this year.
President and chief executive Somporn Vongvuthipornchai said production and development costs are expected to increase and will impact profit-sharing unless auctions are carried out as planned.
After completing the auction, winning firms have to prepare and develop sites for at least four years, taking care of rig design, human resource, financial support, production design and schedule.
"We only have four years left and we cannot postpone anymore. Working schedules will be too tight for investors and increasing costs cannot be controlled," Mr Somporn said. "Sufficient time to prepare and develop will allow investors to select the best contractors and subcontractors, but time limitations may change everything."
He said the central government has prepared to draft a new petroleum act and public participation outline during the delay period, as discussed with dozens of energy experts, E&P firms and non-governmental organisations.
The new petroleum act draft has many alternative business models for after the auction is completed, such as production-sharing contracts and service contracts, unlike the old one that had only the concession model.
The two gas fields have an average combined gas production of 2,200 standard million cubic feet per day (MMSCFD) or almost 40% of a domestic gas demand.
In total, 800-900 MMSCFD is from Bongkot and 1,300-1,400 MMSCFD is from Erawan.
The latest scheduled auction has been set for the second half by Energy Minister Siri Jirapongphun.
The preliminary terms of reference (ToR) will be a daily contract volume of a combined 1,500 MMSCFD.
Mr Somporn said the Bongkot site employs 600, excluding outsourced equipment, food and drinks.