The Ministry of Energy is preparing to open a bidding round for the right to explore and produce petroleum in three offshore exploration blocks in the Gulf of Thailand: Exploration Block Nos. G1/65, G2/65, and G3/65. Announced in April 2022 with an eye toward national energy sustainability and security, this is the first opportunity for exploration of new offshore areas in 15 years. The total area of the three exploration blocks is 35,164.01 square kilometers, and operations in the exploration blocks will be subject to the terms and conditions of the required production sharing contract (PSC). Under the PSC, the Thai government is entitled to receive royalty payments against profits, any applicable cost recovery, and profit petroleum. The government also has the authority to monitor the petroleum operations in collaboration with the successful bidder. On July 27, 2022, the Department of Mineral Fuels (DMF) held a conference for prospective investors in order to clarify general information regarding the petroleum bidding round. Currently, interested investors can request the right to enter the bidding-round data room located at the DMF by emailing [email protected] by September 2, 2022. To participate in the bidding round, interested investors must submit an application together with required documents to the DMF during the period of September 5–16, 2022. For further information on the bidding round, or on any aspect of energy law in Thailand, please contact Tilleke & Gibbins at [email protected] or +66 2056 5555.

On February 9, 2022, the Director-General of the Department of Mineral Fuels (DMF) stated that the DMF is planning to request that the Deputy Prime Minister and the Minister of Energy sign an invitation to open bids for Petroleum Exploration and Production Licenses in the Gulf of Thailand for the first time in 15 years. The DMF’s Chief Department expects that this auction, which will cover three offshore areas, could increase Thailand’s petroleum reserves, and it could lead to the possible discovery of new sources of petroleum for Thailand, which would boost the country’s energy resources, and reduce losses from energy imports. The plots in the Gulf of Thailand that will be auctioned in the 24th bid round are as follows: Plot No. G1/65 with a total area of 8,487 square kilometers. This area is divided into 2 sub-areas: Area A totaling 8,298.49 square kilometers, and Area B totaling 188.71 square kilometers; Plot G2/65 with a total area of 15,030 square kilometers; and Plot No. G3/65 with a total area of 11,646.67 square kilometers. This area is divided into 2 sub-areas: Area A totaling 11,028.22 square kilometers, and Area B totaling 618.45 square kilometers. Generally, Thailand initiates its concession and production sharing contract process with the announcement of an exploration area or a plot in the Government Gazette. Thereafter, the DMF Committee will consider and announce the invitation, so that private sector firms can submit their applications to receive respective rights. The DMF’s sub-committee will consider the applications by: checking the qualifications stipulated under Section 24 of the Petroleum Act; assessing the suitability of the exploration project; and determining the benefits which are offered by the applicant. After considering the requests, the DMF’s sub-committee will consider the petroleum laws and regulations, before submitting the matter to the Petroleum Committee—under