Thailand’s Department of Mineral Fuels has said that a date for talks between Thailand and Cambodia to explore a new petroleum source in the Gulf of Thailand’s Overlapping Claims Area (OCA) should emerge in two months.
A joint technical committee under the foreign ministries of the two countries will start working on details of the talks in two months, said Sarawut Kaewtathip, the director general of the department.
The next Thai administration is expected to push ahead with the talks as parliament’s four year term is due to end in late March. He added that he believed the OCA is likely to be a new petroleum source for Thailand and Cambodia because the site is located near the Bongkot and Erawan gas blocks.
The two gas fields, operated by PTT Exploration and Production (PTTEP), are key sources of gas supply for Thailand.
Thailand has imported more costly liquified natural gas for use in power generation, following a drop in domestic gas supply in the Gulf.
This is a major reason why the power tariff, which is used to calculate electricity bills, has soared to a record high, said Kurujit Nakornthap, executive director of the Petroleum Institute of Thailand.
Thailand and Cambodia were both affected by COVID-19 and the global energy price crisis, so this year would be an appropriate time for the two countries to work together to find a new petroleum site. He said.
The OCA talks started in 2001 but a conclusion has not been reached since then.
The department organised an auction for licenses for three offshore petroleum exploration and production sites in the Gulf.
Deputy Prime Minister Supattanapong Punmeechaow prompted authorities to speed up a new onshore petroleum auction as part of state efforts to deal with the impact of high energy prices.
Mr Sarawut said the department needs to carefully select areas to ensure they are not in forests, in order to avoid conflict with environment activists.
Montri Rawanchaikul, chief executive of PTTEP said he believes a new onshore petroleum field will be found in northeastern Thailand where the company’s Sinphuhorm gas field is located.
Source: Bangkok Post
