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ANNOUNCEMENT
MINISTRY OF ENERGY

SUBJECT : INVITATION TO SUBMIT APPLICATION FOR PETROLEUM CONCESSIONS FOR EXPLORATON BLOCKS ONSHORE, AND IN THE GULF OF THAILAND

The Ministry of Energy wishes to invite petroleum companies to submit applications for concession rights in petroleum exploration and production of 65 exploration blocks located onshore, and in the Gulf of Thailand. Detailed descriptions of the exploration areas open for applications are shown in Map No. P92/2007 as appeared in Attachment 1 annexed hereto. The geological constant factors and special reductions of each exploration block are shown in Attachment 2.

Any interested company may apply for such rights in accordance with the following rules, procedures, and conditions:

QUALIFICATIONS OF THE APPLICATIONS

The applicant must possess all the qualifications as stipulated in Section 24 of the Petroleum Act B.E. 2514 (1971), as follows:
  1. must be a company or companies, and
  2. must command assets, machinery, equipment, tools and specialists to such an extent that the applicant is capable to explore for, produce, sell and dispose of petroleum.
If the applicant does not possess all the qualifications under (2) hereof, the applicant must have another company which the Government finds reliable and which possesses all the qualifications under (2) and has relationship in capital or management with the applicant, guarantee that such company shall make available to the applicant assets, machinery, equipment, tools and specialists to such an extent that the applicant shall be capable to explore for, produce, sell and dispose of petroleum.

PROCEDURES IN THE CONCESSION APPLICATION

The applicant, in applying for petroleum concessions, shall take the following procedures:

2.1  Duration for the Submission of Application

  1. The applicant must submit the application for petroleum concessions together with documents under 2.2 to the Department of Mineral Fuels (the Department) within 1 year from the date of this announcement or the date as may be specified in further notice.
  2. The Department will evaluate the applications for petroleum concessions submitted within the 15th of each month. The last day of the first submission is the 15th of July B.E. 2550 (2007).
  3. As the applications for the blocks which have already been applied for and are still under consideration of the Department will not be admitted until such consideration is finalized, the Department will occasionally make an announcement of such blocks.

2.2  Document Required in the Application for Concessions

The applicant must submit the application for petroleum concessions in the DMF/P1 Form as appeared in Attachment 3 annexed hereto and as prescribed in the Ministerial Regulation No. 3 (B.E. 2514) issued under the provisions of the Petroleum Act. B.E. 2514 and furnishes the following documentary evidence:


(1)
documentary evidence proving the existence of the company including;
  a.
Certificate of Incorporation ; (copy of the Certificate shall be certified within the recent three months)
  b. Objectives of the company;
  c. List of the major shareholders;
  d. Document on registered capital.
(2)
evidence showing the power of attorney with ability to sign on behalf of the applicant company, for example, document on directors of the company who have the power to sign on behalf of the company, power of attorney, etc.
(3)
(3) evidence showing that the applicant commands assets, machinery, equipment, tools and specialists to such an extent that it is capable to explore for, produce, sell and dispose of petroleum, for example, annual report of the company (or balance sheet or operational report) for the recent three years.
In the case where the assets, machinery, equipment, tools or specialists commanded by the applicant are inadequate or incomplete, and another company which the Government finds reliable guarantees to make available to the applicant assets, machinery, equipment, tools or specialists to such an extent that the applicant shall become capable to explore for, produce, sell and dispose of petroleum, the applicant must furnish evidence showing the guarantee in making available to the applicant assets, machinery, equipment, tools or specialists and evidence showing the relationship in capital or in management between the guarantor company and the applicant as well as the evidence required under item (1), (2), and (3) hereof of the guarantor company.
In the case that the applicant and/or the guarantor company is a company established under foreign laws, the evidence required under item (1), (2) and (3), must also be accompanied by a verification issued by the office in Thailand of the embassy, legation or consular office of the country of its establishment, or issued by notary public or, if there is no notary public in the country where the applicant company and/or the guarantor company was established, issued by a person having the same powers and duties as the notary public.

2.3  Exploration Program

  1. An outline of petroleum exploration program indicating methods and time schedule of the operations together with estimated expenditures of each work, and geological reasons to support the proposed petroleum exploration program of the applied exploration blocks.
    In this regard, the Department of Mineral Fuels has prepared data packages consisting of data on geology, geophysics and the wells drilled in the areas the works were performed. The applicant can purchase any of data packages to use in preparing the petroleum exploration program of the applied blocks. Details of data packages are in Attachment 4.
  2. The amount of expenditure obligations and physical work obligations for petroleum exploration of each exploration block shall be filled in the Form for Petroleum Exploration Obligation Proposal as shown in Attachment 5 in conformity with the prescriptions of the Ministerial Regulation No.16 (B.E. 2532) issued under the provisions of the Petroleum Act B.E. 2514

2.4 Special Advantages

  1. The applicant may propose special advantages such as scholarships, training, or supporting fund for petroleum development in Thailand, etc.
  2. After a production area has been first correctly defined in the concession block, the applicant must propose in its special advantages to have a Thai juristic person (established under the laws of Thailand with Thai nationals holding more than 50% in it), with the approval of the Petroleum Committee, to acquire an undivided participating interest of not less than 5% under the concession. Such juristic person shall reimburse the applicant the expenditures incurred from the block prior to the date of its participation according to its participating interest share and bear its participating interest share of all the expenditure incurred in the block from the date of its participation.
  3. The applicant must propose in its special advantages to make use of services on transport vehicles, construction and others relating to petroleum activities from contractors, or to materials and tools available in Thailand.
The proposed Exploration Program under item 2.3 together with the Special Advantages under item 2.5 shall be submitted in a separate sealed envelope stating clearly ďExploration Program and Special AdvantageĒ.

3 RULES IN CONSIDERATION OF THE APPLICATION

  1. Only applications that have been submitted in accordance with the procedures as prescribed in this Announcement will be deemed complete and considered.
  2. The Department will first consider the applicantís qualifications and credential i.e., reputation, experience and financial strength or proposed bank guarantee.
  3. Each applicant will be informed of the initial status of evaluation of their applications within 30 working days after the 15th of each submission month.
  4. Qualified applicants will pass to step 3.5 and 3.6 in selecting prospective concessionaires.
  5. In selecting the concessionaires, each application will be graded and compared. The points given are:

    •  Petroleum exploration program and the amount of expenditure obligations and physical work obligations

    80 points

    •  Special advantages

    20 points


  6. The consideration of the petroleum exploration program will be based on the conformity of the amount of proposed physical work with the geological reasons of the exploration block and the amount of proposed expenditure. The applicants may be invited to appear before the Department to provide clarifications and additional justification for their applications.

4. RESERVE OF RIGHTS AND OTHERS

  1. The Government reserves its right to grant the rights to explore for and produce petroleum under this Announcement to any applicant. Applicants shall not be entitled to claim for any conditions other than those specified under this Announcement.
  2. When the awarding of the concession for the right in petroleum exploration and production is announced, and the competent officer has informed the successful applicant by written notice, at the address given by the applicant, of the date, time and place for affixing its signature to the concession, if the successful applicant fails to appear and affix its signature within the designated time without justifiable ground, it shall be deemed that the successful applicant no longer wishes to become a concessionaire and the said applicant shall not be entitled to claim for damage or for any rights from the Government.

Any company interested in obtaining the right to explore for and produce petroleum in the areas mentioned above is invited to submit its application, together with an application fee of 10,000 Baht per application to the Department of Mineral Fuels, Ministry of Energy, during office hours.

For further information, please contact the Director, Bureau of Petroleum Operation and Coordination, Department of Mineral Fuels, Shinawatra Tower III, 25th Floor, 1010 Viphavadi-Rangsit Road, Chatuchak, Bangkok 10900, THAILAND, telephone (662) 791-8361 or fax. (662) 791-8369 during office hours, or visit our website, www.dmf.go.th

Given on this 23rd day of May B.E. 2550 (2007).

 

Signature

(Mr. Piyasvasti Amranand)

Minister of Energy

** Remark

This English translation was prepared by officers of the Ministry of Energy. Although care was taken to render the translation as reliable as possible, it does not carry any legal authority. Only the original text in Thai has legal force.