Bangkok Post: Thailand to offer first oil, gas-exploration licenses in 7 years

Securing new supplies is important for energy security because existing reserves in the gulf may last for only seven years, Energy Minister Narongchai Akrasanee said in an interview yesterday. A list of potential investors may be complete by the end of the year, he said.

Thailand's natural gas resources are declining as an expansion of Southeast Asia's second-biggest economy increases demand and state energy subsidies encourage consumption. The country's proven natural gas reserves plunged 43% over the past decade to 8.41 trillion cubic feet, from 14.75 trillion in 2003, data from the Department of Mineral Fuels shows.

"Because of the very distorted prices, we have been dependent too much on natural gas to the point where we have to start importing more and more," Mr Narongchai said in his office in Bangkok. "So we would want to produce or secure more supply from local sources by means of allowing a new round of exploration and production permits."

The government will offer concessions for 29 exploration areas offshore and in the central and northeast provinces, according to the Department of Mineral Fuels. Most will be onshore blocks in the northeast, close to Thailand's border with Laos, where recovery levels may be higher, Mr Narongchai said. MORE