Auctions for the Erawan and Bongkot gas blocks have some investment risks for new operators, which is why the final two bidders were existing exploration and production (E&P) firms -- Chevron Thailand Holdings and PTTEP Energy Development, says Siri Jirapongphan, Energy Minister.
"The ministry is satisfied with the two operators in the final round," he said.
US-based Chevron operates the Erawan block and Thailand's PTTEP is in charge of Bongkot, along with France's Total SA, which has a 33.3% stake.
Total did not submit a bid.
The auctions for the Erawan (G1/61) and Bongkot (G2/61) blocks are scheduled for late April after the National Energy Policy Council, chaired by the prime minister, approves the bids.
In the pre-qualification process, there were six bidders from many countries, but before the document submission on Tuesday, four companies were primed to take part.
Mr Siri said North Bongkot has a natural gas output of 604 million standard cubic feet per day (MMSCFD) and the E&P operator must drill 455 holes, a high ratio when compared with the Yadana gas field in Myanmar that produces 755MMSCFD from drilling only 21 holes.
Both gas fields have 278 existing gas rigs and the ministry forecasts that each new operator has to invest in 150 new gas rigs units. Combined with maintenance costs for the next decade, this means E&P firms have to invest some 1.1 trillion baht.
Mr Siri said the government can gain a 10-year royalty fee of 800 billion baht, equal to 80 billion baht per year under a new profit-sharing contract that is higher than the current concession.
In addition, the government is requesting a joint venture with 25% ownership in each gas field through PTTEP, which will be a shareholder on behalf of the government, investing 250 billion baht in each field.
PTTEP is a subsidiary of PTT, the state-owned enterprise.