Oil auction winners to be announced next month

Energy officials plan to announce the winners of the country’s 25th onshore petroleum auction next month, a move meant to increase reserves and strengthen long-term economic growth.

The Department of Mineral Fuels (DMF) offered nine exploration blocks — seven in the Northeast and two in the central region — covering more than 33,000 square kilometres.

Bids were submitted in July, said DMF director-general Warakorn Brahmopala.

Mr Warakorn described the auction as critical to reducing reliance on imported oil, stabilising energy costs, and ensuring supply amid global price volatility and geopolitical tensions.

“The petroleum business brings royalties, tax revenue and jobs for local communities,” he said.

The bids mark Thailand’s first onshore exploration auction since 2007. Advances in drilling technology have increased the chances of discovering new oil and gas sources, according to the department.

Final bidders include international players such as ECO Orient Companies, backed by Hong Kong and China Gas Co, and Pan Orient Energy (Siam), owned by Malaysia’s Dialog and Thailand’s Sea Oil in partnership with CanAsia Energy.

Local contenders include PTTEP International, Geo Mechanical Services, and UAC Utilities, the energy arm of UAC Global Plc.

Thailand operates seven onshore petroleum blocks with a combined output of 33,000-34,000 barrels per day.

Alongside petroleum expansion, Thailand is advancing carbon capture and storage (CCS) projects.

A pilot launched in September by PTT Exploration and Production Plc is expected to store up to 8 million tonnes of CO₂ under the offshore Arthit gas block, with the first capture slated for 2028.

The DMF plans a site survey early next year for a new CCS project in the upper Gulf of Thailand.

Regarding long-term plans, underground storage capacity of 225 million tonnes across offshore oil and gas blocks is expected to be developed.

Energy Minister Auttapol Rerkpiboon said earlier authorities plan to install CCS systems worth 540 billion baht to help Thailand reduce CO₂ emissions.

The Anutin Charnvirakul government wants Thailand to strike a balance between greenhouse gas emissions and absorption by 2050, 15 years sooner than the previous deadline.