Five oil firms eye Thailand’s planned 2026 Andaman bids

Thailand’s Energy Ministry hopes to launch its 26th petroleum bidding round in the Andaman Sea by late 2026, with five major energy companies identified as potential participants, but Cabinet approval of key fiscal terms remains pending, according to Bangkok Biznews.

The Andaman initiative is intended to strengthen Thailand’s energy security as major gas fields in the Gulf of Thailand decline. Bangkok Biznews put the estimated life of Thailand’s proved gas reserves, or 1P, at 4.6 years, rising to 8.3 years when probable reserves are included in the combined 2P estimate.

Cabinet decision holds up Thailand’s 26th petroleum round

The Department of Mineral Fuels is ready to advance the Andaman bidding round, but a formal invitation must await Cabinet approval of special remuneration terms, an Energy Ministry source told Bangkok Biznews. The source described the outstanding item as a geological parameter, referred to as Special Remuneration, or SR, requiring Cabinet approval under the law.

The Energy Ministry’s proposed Andaman fiscal incentives are intended to attract investors able to absorb the risks and costs of deepwater exploration.

“The matter is now on the prime minister’s desk,” the Energy Ministry source told Bangkok Biznews. “It is not just the 26th round. Several Energy Ministry matters remain pending, including transfers of participating interests and the results of the 25th round, which finished long ago but still cannot be officially announced.” 

 

Former energy minister Auttapol Rerkpiboon had submitted the matters to Cabinet before a change of government disrupted progress, the Energy Ministry source said.

If Cabinet approves the fiscal terms soon, the invitation could be announced by the end of 2026, the Energy Ministry source said. Companies would then buy documents and study geological information in a data room in early 2027, followed by proposals and the announcement of successful bidders in the second or third quarter of 2027.

The process after Cabinet approval would take about a year, the Energy Ministry source told Bangkok Biznews. Investors would have four to five months to study the data, followed by three months of assessment by the Petroleum Committee before the proposed concession winners return to Cabinet for final approval.

Changes in senior Energy Ministry personnel had contributed to delays, an Energy Ministry source told Bangkok Biznews, arguing that energy matters were being given lower priority or subjected to unnecessarily detailed scrutiny.

“The Energy Ministry is trying to find every available domestic energy resource to reduce imports,” the Energy Ministry source told Bangkok Biznews. “But if government decision-making remains held up like this, it will affect investor confidence and people’s electricity bills in the long term.”

Five energy companies emerge as potential Andaman bidders

Bangkok Biznews identified five major energy companies as potential participants in the Andaman round, pointing to their financial resources and advanced exploration technology:

• Chevron: Bangkok Biznews reported that Chevron had signalled its readiness, describing Andaman exploration as a good fit with its experience of developing deepwater petroleum fields worldwide.
• TotalEnergies: Despite selling interests in the Gulf of Thailand and moving its base to Singapore, TotalEnergies is closely watching the Andaman round as an attractive frontier project, Bangkok Biznews reported.
• PTT Exploration and Production Public Company Limited (PTTEP): Thailand’s national petroleum explorer is preparing to compete in the Andaman round to help secure domestic energy supplies, according to Bangkok Biznews, which described the company as having the broadest geological database.
• Eni: The Italian energy company has deepwater exploration expertise and is looking for joint-venture partners for Andaman exploration, Bangkok Biznews reported.
• Exxon: Bangkok Biznews reported that Exxon was interested in jointly studying Andaman geology to assess the project’s commercial viability.

Shell has separately bought additional geological data and requested a meeting with Thailand’s energy minister to discuss investment details, the Energy Ministry source told Bangkok Biznews. The source viewed Shell’s interest as a positive sign that Thailand could attract major international operators back to exploration opportunities.

The Energy Ministry is also considering cooperation with Indonesia on petroleum development because geological structures extend across the region, according to Bangkok Biznews. The United Arab Emirates’ Mubadala has expressed interest in studying information relating to that potential cooperation.

Thailand puts Andaman exploration on its Gastech agenda

Thailand’s Energy Ministry plans to promote Andaman petroleum investment at Gastech 2026 on September 14–17 at the Bangkok International Trade & Exhibition Centre (BITEC). Bangkok Biznews reported that the ministry’s presentation would cover three priorities:

1. Investment opportunities in Thailand’s Andaman petroleum concessions.
2. Gas infrastructure development and Thailand’s ambition to become a liquefied natural gas (LNG) hub for the Association of Southeast Asian Nations (ASEAN).
3. Investment incentives through Thailand’s electricity market liberalisation, including direct power purchase agreements, or Direct PPAs.

The Department of Mineral Fuels has outlined a single exploration block, A1/68, covering 60,277.90 square kilometres, according to Bangkok Biznews. The block encompasses the Mergui, North Sumatra and East Andaman sedimentary basins.

Water depths of 400–2,000 metres make Andaman exploration technically demanding and costly, Bangkok Biznews reported. The decision to offer one large block reflects the risks and substantial infrastructure investment needed for development.

The deepwater acreage targeted for exploration has not previously been drilled because of technological and cost constraints, according to Bangkok Biznews. The Energy Ministry source said the frontier area had geological potential for substantial gas discoveries that could support Thailand’s regional LNG hub ambitions.

Bangkok Biznews linked the Thai Andaman geology to Indonesia’s Timpan and Layaran discoveries, which the publication described as containing several trillion cubic feet of gas combined. Harbour Energy’s discovery announcement confirms that Layaran-1 targeted the same geological play as the successful Timpan-1 well.

Andaman investment projections depend on successful exploration

The potential economic value of Andaman development could reach hundreds of billions of baht if exploration leads to a commercially viable discovery, according to Bangkok Biznews. The publication set out three stages of potential investment and state returns:

• Initial exploration: Geological studies and exploration drilling in the Andaman block could attract 300 million–1.2 billion baht per block. Bangkok Biznews estimated that a single deepwater exploration well could cost US$27 million, equivalent to more than 900 million baht in the report’s estimate.
• Commercial development: If Andaman exploration succeeds and finds the targeted 10 trillion cubic feet of gas, development could include deep-sea ports, support bases and gas separation plants, Bangkok Biznews reported. The projected economic value would run into hundreds of billions of baht.
• State revenue: Thailand would receive royalties, petroleum income tax and special bonuses from successful Andaman development. Bangkok Biznews reported that the government was preparing to consider a hybrid contractual regime to provide flexibility and encourage deepwater investment.

Source: Bangkokbiznews Kanyanat Butdee