×
×
Policy & Regulation

Chevron's Erawan dispute highlights decommissioning risk in Southeast Asia

The disagreement over the cost of decommissioning the giant field underscores the risks for operators in Southeast Asia as the region braces for a wave of assets nearing the end of their lives The disagreement over the cost of decommissioning the giant field underscores the risks for operators in Southeast Asia as the region braces for a wave of assets nearing the end of their lives.
By Damon Evans 22 November 2019 Asia Pacific / Policy & Regulation 0 34815
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...