Thailand Plans March Auction For Erawan, Bongkot Gas Fields

330  Views   |   Saturday, February 10, 2018

Reuters - Thailand expects to hold an auction for two gas fields in March after terms are approved, Energy Minister Siri Jirapongphan said Feb. 9 at a seminar.

Thailand Plans March Auction For Erawan, Bongkot Gas Fields

The Energy Ministry and Department of Mineral Fuels will finalize the terms of the auction by the end of February and send it to the Cabinet for approval in March before the gas fields are open to bids, the minister said.

“One condition is that bidders will have to maintain a combined production level in both fields of at least 1.5 billion cubic feet per day,” Minister Siri said, adding that the selection process will take between five and six months.

Currently, the areas have a combined output of 2.1 billion cubic feet a day, according to government data.

Chevron Corp. operates the Erawan Field while state-owned PTTEP operates the Bongot Field under licenses which are set to expire in 2022 and 2023, respectively.

Last month, Royal Dutch Shell sold its 22% stake in the Bongkot Field to PTTEP for $750 million. PTTEP has said that it would participate in the auction of both fields.

Auctions were slated to take place in December 2017 but have since been delayed.