Thailand's military government will complete by September 2017 an auction for expiring oil and gas contracts held by Chevron Corp. (NYSE: CVX) and PTTEP, the country's energy minister said on Sept. 26.
In August, the government said it planned to open bids for the contracts in March 2017. Energy Minister General Anantaporn Kanjanarat said Sept. 26 that the auction would be completed at the earliest in September 2017.
"We want the auction to be transparent. The private sector has said that if the auction takes place next year, they can take part in time, but if it is longer than that, then entrepreneurs will be uncertain," Anantaporn told reporters following a national energy policy meeting.
Chevron's Thai unit holds concessions to operate the Erawan gas field. PTTEP operates the Bongkot gas field. Contracts for the two offshore fields are due to expire in 2022 and 2023, respectively.
The fields have combined production of 2.2 billion cubic feet per day, or 76% of output in the Gulf of Thailand.
PTTEP, Thailand's largest oil and gas explorer, has said it will bid to operate the Bongkot Field.
The military government put off a bidding round of concessions for 29 onshore and offshore blocks in early 2015 due to criticism of the contract terms from politicians and activists.
The bidding round was originally planned for 2011 but was on hold after devastating floods that year and then a political crisis that began in late 2013 and culminated in a military coup in May 2014.
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