New oil rules to elevate output, energy security

New oil rules to elevate output, energy security Small Medium Large Business General New oil rules to elevate output, energy security Regulations allow petroleum production licences to be renewed several times PUBLISHED : 18 Jul 2026 at 04:38 NEWSPAPER SECTION: Business WRITER: Yuthana Praiwan Small Medium Large The Erawan gas block in the Gulf of Thailand is operated by PTTEP. The government is moving closer to approving new regulations that would allow petroleum production licences to be renewed multiple times, a significant shift aimed at strengthening investment in exploration and production.Prasert Sinsukprasert, the energy permanent secretary, said the amendment to the Petroleum Act is designed to ensure continuity in energy development and reduce reliance on costly liquefied natural gas (LNG) imports.

The current law permits only a single 10‑year renewal, a restriction that has caused delays in petroleum projects. The Department of Mineral Fuels (DMF) announced earlier it would submit the draft amendment to the cabinet and the Council of State for consideration. Officials argue that petroleum blocks nearing concession expiry still hold potential for oil and gas output, and extending renewals without calling for new bidding would help to safeguard Thailand's energy security.

The urgency of reform became clear during the Erawan gas field transition in the Gulf of Thailand. When licences expired, production fell sharply from 1,200 million standard cubic feet per day (MMSCFD) to just 200 MMSCFD in 2022, coinciding with global energy price spikes following Russia's invasion of Ukraine. The shortfall forced Thailand to import expensive LNG, with the Electricity Generating Authority of Thailand spending more than 150 billion baht to subsidise electricity prices.

Gas accounts for nearly 60% of fuels used for power generation in Thailand. The disruption was compounded by a prolonged dispute between Chevron Corp and the DMF over decommissioning costs, which delayed PTT Exploration and Production Plc (PTTEP) from taking over operations after winning the auction in 2018. The conflict was only resolved in 2022, which allowed PTTEP to prepare for full-scale gas production.

Energy officials said the proposed amendment would prevent similar interruptions in the future, ensuring smoother transitions and sustained output from existing petroleum blocks. In addition, the government is preparing to propose renewal of the concession for the Malaysia‑Thailand Joint Development Area, another key gas field in the Gulf that is set to expire in 2029. Subscribe to our newsletters for daily updates, breaking news and exclusive content.

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KEYWORDS Thailand energy security Petroleum act amendment Natural gas production Department of mineral fuels Erawan gas field Lng imports Thailand energy policy COMMENT RECOMMENDED PM urged to strengthen tourism ties with China Gold prices face turbulence as oil, Fed risks increase Power plan for data centres readied Senate panel disqualifies NBTC chairman Government bonds worth B4bn on sale TRENDING