Thai Cabinet Asked to Ease Levy for Andaman Gas Exploration
The Thai government is seeking to incentivize exploration of the Andaman Sea for natural gas by reducing a special levy on successful bidders. The Energy Ministry has asked the Cabinet to consider lowering the Special Remuneratory Benefit (SRB) for companies investing in deep-water petroleum exploration.
Thailand's proved natural gas reserves are estimated to be sufficient for only another 4.6 years, according to the Department of Mineral Fuels (DMF). The country already relies heavily on imported energy, bringing in around 90% of its crude oil requirements and meeting about 46% of its natural gas demand through liquefied natural gas imports.
The proposed incentive would apply to the 26th petroleum exploration and production bidding round, which will cover an area of approximately 26,223 square kilometres in the southern Andaman Sea. The block is classified as a Frontier Basin because it is a largely unexplored area where petroleum resources have not yet been commercially established.
Preliminary studies indicate that the Thai section of the Andaman Sea could contain as much as 10 trillion cubic feet of natural gas. If half of that potential volume were discovered and successfully developed, the supply could strengthen Thailand's energy security for as long as 20 years.