Thailand moves to unlock Andaman Sea oil and gas blocks as Gulf deposits wane
Government to launch 26th bidding round offshore as part of a strategic energy reset
Thailand is preparing to open offshore oil and gas exploration blocks in the Andaman Sea, marking a decisive shift as domestic Gulf deposits dwindle.
Energy Minister Auttapol Rerkpiboon announced that the cabinet has approved a plan to invite private companies to bid for exploration and production rights in the deep-water blocks.
The bidding round, known as Round 26, is expected to begin in late 2025. Officials at the Department of Mineral Fuels (DMF) say the move could unlock deposits of up to ten trillion cubic feet of natural gas — a discovery that could secure Thailand’s energy supply for decades.
Global energy majors including Chevron, ENI, PTTEP, TotalEnergies and Exxon have expressed interest in participating, drawn by the potential scale and favourable new contract terms.
The DMF is considering a hybrid production-sharing contract (PSC) model to make deep-water exploration more appealing and economically viable.
Officials argue that tapping Andaman resources will help reduce reliance on expensive imported liquefied natural gas (LNG), strengthen energy security and lower power costs.
The government views the development as a vital step in securing stable, domestically sourced fuel for Thailand’s long-term energy needs — especially as consumption rises and older gas fields in the Gulf decline.
If a major reserve is confirmed, the benefits could extend far beyond energy.
Experts say it could bolster national revenues, generate employment, and trigger investment in infrastructure such as ports and LNG processing facilities.
With the new licensing round underway, Thailand signals a bold pivot toward unlocking previously untapped offshore reserves — potentially reshaping its energy landscape for years to come.
Energy Minister Auttapol Rerkpiboon announced that the cabinet has approved a plan to invite private companies to bid for exploration and production rights in the deep-water blocks.
The bidding round, known as Round 26, is expected to begin in late 2025. Officials at the Department of Mineral Fuels (DMF) say the move could unlock deposits of up to ten trillion cubic feet of natural gas — a discovery that could secure Thailand’s energy supply for decades.
Global energy majors including Chevron, ENI, PTTEP, TotalEnergies and Exxon have expressed interest in participating, drawn by the potential scale and favourable new contract terms.
The DMF is considering a hybrid production-sharing contract (PSC) model to make deep-water exploration more appealing and economically viable.
Officials argue that tapping Andaman resources will help reduce reliance on expensive imported liquefied natural gas (LNG), strengthen energy security and lower power costs.
The government views the development as a vital step in securing stable, domestically sourced fuel for Thailand’s long-term energy needs — especially as consumption rises and older gas fields in the Gulf decline.
If a major reserve is confirmed, the benefits could extend far beyond energy.
Experts say it could bolster national revenues, generate employment, and trigger investment in infrastructure such as ports and LNG processing facilities.
With the new licensing round underway, Thailand signals a bold pivot toward unlocking previously untapped offshore reserves — potentially reshaping its energy landscape for years to come.
