Chevron's Erawan dispute highlights decommissioning risk in Southeast Asia

A platform on the Platong gas field in Thailand. (Chevron)

Chevron and the Thai government have until March 2020 to resolve a complex decommissioning issue that may scare off future investors unless an out-of-court settlement is reached.

The dispute stems from a 2016 law that requires operators to pay the costs of decommissioning assets they installed even if they no longer operate them. In June, Chevron objected to a request by Thailand’s energy ministry to start paying decommissioning costs – estimated at $2 billion – for infrastructure at the giant offshore Erawan field. The amount also...