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Published on October 30, 2007

The deals guarantee domestic supply of natural gas for another 15 years, and will boost production to 3.3 billion cubic feet a day by 2010 from a present 2.4 billion cubic feet.

According to Energy Minister Piyasvasti Amranand, the current production contracts for Chevron Thailand Exploration and Production - which operates blocks 10 to 13 - and PTTEP - which operates blocks 15 to 17 - expired in 2012.

The Cabinet approved the deals two weeks ago. Both consortiums are expected to spend at least a combined US$15 billion (Bt510 billion) exploring for gas over the next 10 years.

In addition, they will pay special benefits worth around a combined $1.23 billion to the government over the 10-year period. This is in addition to royalties and taxes.

Mineral Fuels Department director-general Krairit Nilkuha said other companies had been invited to seek exploration and production contracts for an additional 65 blocks, 56 of which are onshore.

Applications for 28 blocks have been received, he added.

 Energy Reporters

 The Nation