But local newspaper Thansettakij has reported it as around 75 billion baht ($2.5 billion), citing industry sources. Thailand’s Ministry of Energy promulgated the Ministerial Regulation Prescribing Plan and Estimated Cost and Security for Decommissioning of Installations Used in the Petroleum Industry B.E.
2559 (2016) earlier this year. Thailand wants Chevron to pay the full decommissioning costs, estimated Thailand wants Chevron to pay the full decommissioning costs for infrastructure at the Erawan gas field, which it is due to hand over to Thai state oil firm PTT Exploration and Production Pcl in April 2022 when its concessions expire. We will ensure continuity in natural gas supply with competitive costs, resulting in maximizing benefits to the country and creating energy security in the long term,” said Somporn Vongvuthipornchai, Chief Executive Officer.Worth noting, France’s Total, which had prequalified for the bidding round, did not take part in the bidding.According to Thai Department of Natural fuels, Chevron filed both bids in partnership with Mitsui.PTTEP boosted its 2019 profit on the back of higher sales volumes lifted by acquisitions and increas...In a statement on Tuesday, PTTEP said it had submitted bids for Bongkot and Erawan gas fields “with confidence in its competitive proposals that will deliver the continuity in natural gas supply with competitive costs, ensuring energy security and creating higher benefits to the country.”Worth noting, the blocks cover the producing Erawan and Bongkot gas developments, which are already operated by Chevron and PTTEP, respectively.PTTEP said it would bid alone on Bongkot, while for the Erawan gas block, it will partner with Mubadala Petroleum (Thailand). For 2016, E&P STC Chairman revised the committee’s strategic direction in order to advocate energy security and Thailand’s competitiveness in E&P investment, promote better understanding about the E&P industry through transparent information disclosure, encourage fair legal framework applicable for the decommissioning work while leveraging best practices and technologies to provide practical solutions for decommissioning … Thailand wants Chevron to pay the full decommissioning costs, estimated by a local newspaper at around $2.5 billion, for infrastructure at the Erawan gas field, which it … Foreign investors in Thailand in other industries were also concerned about what precedent the case might set for the sanctity of their contracts.Thailand wants Chevron to pay the full decommissioning costs for the energy infrastructure, estimated by one local newspaper at up to $2.5 billion.Editing by Kay Johnson, Simon Webb and Marguerita ChoyMinister of Energy Sontirat Sontijirawong said in July he wanted to resolve the dispute as a matter of urgency to avoid arbitration, but that the issue was complicated.“We have agreed to temporarily suspend the arbitration process to allow more time for resolution discussions,” a Chevron spokesman told Reuters, adding that the company was “encouraged” by the Thai energy minister’s desire to come to an agreement.The Chevron spokesman said arbitration was still a possibility if talks do not succeed.The dispute arose in 2016 when Thailand retroactively enforced a new energy ministry regulation requiring gas field operators to pay the costs to decommission all installed assets even if they no longer operate those assets.The company had objected to a request by Thailand’s energy ministry to pay a security deposit for the full decommissioning cost of all of the company’s assets in the Erawan gas field.“What decision is made in this case could affect other cases to follow.”“It will snowball, as it’s not just Chevron,” said Kornkasiwat Kasemsri, director of the Energy and Resources Policy Research Center at Thailand’s Rangsit University.Chevron won the concessions to operate four blocks constituting the Erawan gas field, Thailand’s second largest, from 1972 to 2012, after which the contracts were extended for 10 more years.A spokesman for Thailand’s energy ministry on Wednesday said he could not comment on talks with Chevron.The contracts, for blocks 10-11 and 12-13, were first signed under the Petroleum Act of 1971.
Thailand's energy minister on Sunday welcomed a decision by U.S. energy company Chevron to continue negotiations rather than seek arbitration to resolve a dispute over who should pay for removing offshore oil and gas platforms. A dispute between Chevron and the Thai government over the cost of decommissioning the giant Erawan field underscores the risks for operators in the region as assets near the end of … Thailand wants Chevron to pay the full decommissioning.
U.S. energy major Chevron Corp has decided to continue negotiations with Thailand rather than seek arbitration to resolve a …