IN BRIEF

The Ministry of Energy has announced a new 25th bid-round of applications for petroleum exploration and production rights, focusing on onshore blocks, offering exciting opportunities for both domestic and international investors, covering 9 exploration blocks across the Northeastern and Central regions of Thailand, spanning approximately 33,000 square kilometers.

KEY TAKEAWAYS

A. Bid Blocks Overview

The petroleum exploration blocks are located in two main regions of Thailand:

    • Northeastern Region (7 Blocks) – Covering approximately 25,000 km. in 14 provinces, including Nong Bua Lam Phu, Udon Thani, Khon Kaen, Sakon Nakhon, Kalasin, Maha Sarakham, Nakhon Phanom, Mukdahan, Yasothon, Amnat Charoen, Chaiyaphum, Nakhon Ratchasima, Buriram, Roi Et and Surin.
    • Central Region (2 Blocks) – Covering approximately 7,900 km. in 6 provinces, including Phetchabun, Chaiyaphum, Lopburi, Ratchaburi, Kanchanaburi, Nakhon Pathom and Suphanburi.

B. Qualifications for Applicants

  • Company Qualification
    • Legally registered company with petroleum exploration and production as company objective.
    • None history of concession abandonment in Thailand, and their directors, shareholders, and authorized signatories must not be blacklisted from previous concessions.
  • Financial & Technical Capabilities Qualification
  • Company must demonstrate financial stability with minimum shareholder’s equity of 100 million Baht and a current ratio of at least 1.0 for two out of the past three years, along with proven technical expertise and equipment from the past 5 years.

If a company lacks these qualifications, the company must be partner with a government-approved company that can guarantee financial and technical support.

For joint applications, each participating company must meet all Company Qualification, Financial & Technical Capabilities Qualification requirements.

C. Applicant’s Financial Requirements

The application process requires two types of financial obligations:

  • Application fee: A non-refundable fee of 50,000 Baht per application, payable in cash on the submission date.
  • Bid Bond: 3,000,000 Baht is required, provided as an unconditional and irrevocable bank guarantee from a commercial bank operating in Thailand. The bond must be valid for 1 year which will be returned upon application rejection or successful concession signing.

D. Selection Criteria

Applicants for petroleum exploration and production rights must meet specified qualifications and submit a petroleum exploration project proposal. Evaluation will be based on:

    • Work and Financial Commitment Obligations (80 points) Assessed from proposals during both exploration commitment periods, considering alignment with the geological rationale of the exploration block and the appropriateness of the budget.
    • Special Benefits Offered to the State (20 points) Assessed from proposals of special benefits that comply with specified conditions.

The applicant with the highest total score will be granted concession rights. In cases where only one applicant meets the criteria, the authorities reserve the right to cancel or grant/deny rights.

 E. Bidding Days

Applications will be accepted from July 9, 2025 to July 16, 2025 (or until further amendments) during official working hours.

F. Contractual Right & Obligations

Petroleum concession holders get a 6-year exploration period, extendable once for 3 years (9 years total), followed by a 20-year production period, extendable once for 10 years (30 years total). All extensions require compliance and 6-month advance notice. Concessionaires must comply with all laws and regulations regarding the use of government-owned land and cannot claim any expenses or damages if unable to access exploration areas or production sites on government property.

This bidding round presents a significant opportunity for petroleum industry investors to secure exploration and production rights in Thailand.

CONCLUSION

With extensive experience in regulatory compliance, cross-border energy transactions, and sector-specific legal frameworks, ILAW ASIA provides expert legal counsel to navigate the complexities of Thailand’s petroleum laws and licensing processes. Our team has a deep understanding of upstream and downstream energy operations, covering areas such as concession agreements, production-sharing contracts, environmental compliance, and negotiations with government authorities. Leveraging our strong regional presence and industry expertise, we assist clients in mitigating risks, ensuring regulatory adherence, and optimizing investment strategies for successful participation in Thailand’s energy sector.

 

AUTHOR

  • Tanadee Pantumkomon, Partner, Power, Energy, and Major Projects Department;
  • Wachinorot Siladet, Associate, Corporate & Commercial Department and
  • Anantamet Senpan, Paralegal, Corporate & Commercial Department.

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