Bidding light for most Thai offshore, land licenses

Thailand's bid to attract international oil prospecting concerns to help resuscitate exploration received a lukewarm response. Only nine companies applied for E&P rights by the May 30 deadline out of about 200 solicited by the Department of Mineral Resources. The nine companies made a combined 14 bids, while Thailand had offered 101 blocks covering 342,380 sq km onshore and in the Gulf of Thailand.

July 8, 1996

2 min read

Thailand's bid to attract international oil prospecting concerns to help resuscitate exploration received a lukewarm response.

Only nine companies applied for E&P rights by the May 30 deadline out of about 200 solicited by the Department of Mineral Resources. The nine companies made a combined 14 bids, while Thailand had offered 101 blocks covering 342,380 sq km onshore and in the Gulf of Thailand.

DMR director general Pricha Attavipach said the number of bids submitted is on target and the response much better than the previous licensing round over the country's entire Andaman Sea acreage offered last year.

Four of the nine bidders in the round are international majors-Exxon, Texaco, Amerada Hess, and Unocal. Others are medium sized or independent companies, namely GEDD Inc., Cairn Energy plc, and Dragon Ltd., all of the U.K., Anschutz Overseas Corp., Soco Thailand, and Kerr-McGee Corp., all of the U.S.

The nine groups are vying for eight tracts. Four bidders-Dragon, Esso, Unocal, and Texaco-bid for Gulf of Thailand Block B11/38, near Unocal operated Pailin gas field.

The companies sought onshore blocks 4942/38 and 4943/38 generally west and northwest of Sirikit oil field; blocks 5340/38, 5440/38, and 5441/38 generally southwest of Nam Phong gas field; Block 5643/38 northeast of Nam Phong field; and gulf tracts B8/38 east of Nang Nuan oil field and B11/38 lying generally between Baanpot and Bongkot gas fields.

Production status

DMR said Thailand produced about 40% of its estimated proved natural gas reserves in the 15 years ended in 1995.

Production during 1981-95 was 3.005 tcf of gas, leaving 3.903 tcf to be recovered during the next 10 years or so. The Gulf of Thailand has yielded 6.285 tcf, and the rest of the gas came from fields on land.