Andaman Oil to Lure Global Investors
Thailand’s oil and gas exploration and production scheme in the Andaman Sea is expected to draw leading international petroleum investors within two years, according to the Department of Mineral Fuels (DMF).
Warakorn Brahmopala, director-general of the DMF, said the outlook is promising, citing Indonesia’s discovery of proven reserves of 6-7 trillion cubic feet in the southern Andaman Sea two years ago.
Malaysia, located southeast of the area, recently invited investors to drill, underscoring regional potential.
The initiative is part of Thailand’s energy security plan, aimed at offsetting declining domestic oil and gas supplies.
Mr Warakorn confirmed the DMF will call for bids for exploration and production (E&P) in the Andaman Sea by January 2026.
Officials are working on the details of the Round 26 auction, preparing to announce an application date for prospective bidders.
Exploration blocks will be situated far from major tourist destinations in southern Thailand and may involve drilling at depths exceeding 200 metres, he said.
Energy officials are optimistic about finding new petroleum fields in the Andaman Sea.
Mubadala Energy, a national oil and gas firm based in Abu Dhabi in the United Arab Emirates, discovered gas reserves in the area in 2023 after being granted a petroleum E&P licence from the Indonesian government.
The Thai government granted a licence to a company to explore for petroleum in the Andaman for the first time in 1971. More licences were issued in the following years until 2005, but no oil or gas was discovered.
Mr Warakorn emphasised the need to review petroleum E&P laws to prevent disruptions when new operators take over expiring licences.
He was referring to delays at the Bongkot and Erawan gas fields in the Gulf of Thailand between 2023 and 2024, when incoming operators were unable to immediately begin work.
The setback affected domestic gas supply, a critical fuel for Thailand’s power generation.
Mr Warakorn also urged the government to incorporate underground carbon capture and storage facilities into the E&P framework, aligning with Thailand’s climate commitments. Such measures would support the country’s campaign to reduce carbon dioxide emissions, he said.
Thailand pledged to achieve net-zero emissions, balancing greenhouse gas output with absorption, by 2050.