Oil exploration ramped up to cut imports
Thailand is accelerating petroleum exploration both onshore and in the Andaman Sea as it seeks to increase domestic energy supplies and reduce reliance on imports amid continued volatility in global fuel markets.
Thailand is intensifying petroleum exploration efforts to bolster domestic energy supplies and decrease dependence on foreign imports, according to Energy Minister Akanat Promphan. Up to 90% of the nation's crude oil and nearly 46% of its natural gas are currently sourced from overseas, rendering Thailand vulnerable to global fuel market fluctuations and competition, Promphan stated.
At a ceremony granting petroleum exploration licenses to PTTEP International Ltd for the L1/66 and L3/66 blocks in Khon Kaen, the minister emphasized that expanding domestic petroleum resources would safeguard the economy, industries, and consumers from international energy shocks. The government's primary goal is to establish Thailand's energy independence, regardless of external geopolitical disruptions, Promphan added.
The newly awarded blocks are situated near the Sin Phuhom natural gas field in Khon Kaen, in close proximity to existing gas production facilities and pipeline networks, facilitating swift development of commercially viable discoveries without the need for substantial new infrastructure investment. Seismic surveys and exploratory drilling are anticipated to proceed rapidly, with the aim of bolstering regional energy supplies and enhancing the country's long-term energy security.
Thailand is also set to launch its 26th petroleum bidding round, targeting a high-potential basin in the Andaman Sea spanning 26,223 square kilometres. The region is deemed promising due to substantial gas discoveries in neighboring blocks, with average reserves estimated at 7 trillion cubic feet. Global energy companies are expected to take notice.
However, deep-water exploration in the Andaman Sea entails high costs and significant technical risks, according to Promphan. To attract investment, the ministry intends to seek cabinet approval for revised fiscal terms and incentives, including new benefit-sharing calculations and tax incentives to improve project economics and encourage international energy firms to undertake deep-water drilling in Thai waters.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
