Bangkok: The Department of Mineral Fuels has announced the 25th Onshore Petroleum Exploration and Production Auction, featuring nine exploration plots, which will take place from July 1-16, 2025. The auction encompasses seven plots in the Northeastern region and two plots in the Central region, covering a total area of 33,444.64 square kilometers.
According to Thai News Agency, the auction is expected to attract investments exceeding 70 million US dollars, generating significant benefits for the state through royalties, petroleum taxes, and employment opportunities for Thai citizens. Mr. Prasert Sinsukprasert, Permanent Secretary of the Ministry of Energy, highlighted the increasing electricity consumption in the country, which rose by 6% in 2024 compared to the previous year. The peak electricity demand reached 36,792 megawatts, with over 220 billion units consumed annually, indicating a growing need for domestic petroleum exploration to enhance energy security.
The onshore auction aims to mitigate the country’s reliance on imported LNG, with 94 Spot LNG imports recorded in 2024, marking the highest ever. Mr. Prasert emphasized the importance of petroleum in bolstering the economy, ensuring energy security, and enhancing industrial competitiveness, ultimately resulting in lower electricity costs for the public.
Mr. Worakorn Prommoban, Director-General of the Department of Mineral Fuels, stated that geological assessments indicate a high potential for discovering petroleum in the auctioned plots. The Northeast region, in particular, shows promise for natural gas, supporting energy security and the Nam Phong Power Plant in Khon Kaen Province. Technological advancements are expected to improve exploration and drilling success while reducing costs, with drilling budgets estimated at 5 million US dollars per hole in the Northeast and 1 million US dollars per hole in the Central region.
In anticipation of future exploration, the Department plans to hold a forum in late 2025 to discuss the 26th petroleum exploration auction for plots in the Andaman Sea. Interested parties can reserve data room services at the Department of Mineral Fuels until June 30, 2025, to study the potential of these exploration projects.
Applications for the exploration and production rights can be submitted from July 1-16, 2025. The selection process will involve scrutiny by relevant subcommittees, the Petroleum Committee, and the Minister of Energy before Cabinet approval. Successful applicants will be announced by the Department of Mineral Fuels, followed by concession agreement signings.
