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040607

THAI PETROLEUM CONCESSIONS
20th Round of Bidding

The Minister of Energy issued an announcement dated 28 May 2007 inviting applications for petroleum concessions. Applications may be filed during a period of one year, and will be considered monthly after the 15th day of each month. The last day for the first submission is 15 July 2007. An application for a block subject to a previous application will not be accepted until consideration of the earlier application is completed.

The invitation prescribes the usual conditions applicable to recent rounds. There is no condition that applicants must register a limited company under Thai law, which must have paid up capital of at least Baht 100 million. That condition was first dropped in the 19th round.

Each application will be graded according to the following system:

  
 

1.

Petroleum exploration program and amount of expenditure, obligations and physical work obligations: 80 points

2.

 Special advantages, e.g. scholarships, training, contributions to support petroleum development in Thailand, state participation after discovery, etc.: 20 points

Special advantages must include:
bullet

Upon approval of a "production area", an interest of not less than 5% must be offered to a majority Thai-owned company, subject to reimbursement of its share of past expenditure and bearing its share of future expenditure.
bullet

To make use of petroleum service contractors and equipment available in Thailand.
 
 

Applications and supporting documents must be submitted to the Department of Mineral Fuels. If an applicant does not have adequate equipment, personnel and financial resources to perform the exploration program, a guarantee from an entity which does have those resources must also be submitted. Applicants may also propose to provide a bank guarantee.

Applications may be filed for 65 exploration blocks located onshore and in the Gulf of Thailand.

Detailed descriptions of the exploration blocks, and the geological constant factors and special reductions of each block are set forth in the announcement.
 

For more information and the text of the Announcement, see www.dmf.go.th

  
 

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