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Policy & Regulation

NOCs set to play larger role in Thai licensing round

The Thai government wants state companies to take 25% stakes in all the blocks offered in its upcoming licensing round, which could put off international investors The Thai government wants state companies to take 25% stakes in all the blocks offered in its upcoming licensing round, which could put off international investors.
By Damon Evans 7 March 2019 Asia Pacific / Exploration & Production 0 34010
The Bongkot South production platform in Thailand. (Shell)

The key issue: Thailand has announced that it will finally open its much-delayed 21st upstream licensing round by the middle of the year, but the regulatory regime appears to favour state companies.

Interfax analysis: Thailand’s government plans to introduce a rule that requires 25% state participation in every block awarded in its forthcoming bidding round, which is set to take place in June. The unprecedented move could adversely affect potential investment.

The blocks will be offered as production-sharing contracts (PSCs) on similar terms to the 10-year...