jasdooit

The Ministry of Mineral Fuels (DMF) is set to resume oil and gas exploration and production initiatives after a new administration assumes power following the February 8 general election, aiming to draw multi-billion-baht investments and enhance Thailand’s future energy stability.

Warakorn Brahmopala, head of the DMF, mentioned that the department has planned several initiatives for 2026 to tackle delays in upstream oil management while adjusting to fluctuating global market situations.

The key focuses involve obtaining cabinet permission for investors chosen in the 25th exploration and production auction round to enter into agreements for nine land-based blocks, which are expected to require an investment of 2.5 billion baht, he mentioned.

The DMF also intends to seek permission for the 26th phase of oil exploration tenders in the Andaman Sea, which may draw investments between 300 million and 1.2 billion baht per block.

An alternative suggestion is to prolong the operational timeframe for exploration blocks A18-01 and B17-01 in the Gulf of Thailand, which are located within the Malaysia-Thailand Joint Development Area, along with an extra investment exceeding US$8 billion and a 10-year extension.

Regarding the Bua Luang and Pailin fields in the Gulf of Thailand, which have already obtained cabinet approval for a 10-year extension, the incoming government will be requested to recognize these projects, enabling companies to plan their financial allocations.

Mr. Warakorn mentioned that all these efforts will bring income to the government and maintain the ongoing production of oil.

If given the go-ahead, the projects aim to increase Thailand’s oil reserves beyond 10 years, extending the present reserve duration from eight years.

Last year, the domestic oil and gas supply made up roughly 30% of overall energy use, with consumption averaging 2 million barrels of crude oil equivalent daily.

The DMF is also getting ready to file a proposed change to the Petroleum Act to guarantee that operations remain ongoing once permits expire.

The existing legislation permits just one 10-year extension, a limitation that has led to delays and compelled Thailand to increase its use of expensive liquefied natural gas imports.

These delays became apparent when production licenses expired at the Bongkot and Erawan gas fields in the Gulf of Thailand, occurring at the same time as a rise in global oil and gas prices in 2022 after Russia’s invasion of Ukraine.

Provided by SyndiGate Media Inc.Syndigate.info).