4 days ago
Bangchak uncertain on petroleum plans
SET-listed Bangchak Corporation has yet to decide whether to re-enter the petroleum business in Asia, though it is collaborating with Chevron Offshore (Thailand) to explore for oil and gas in a potential area in the Gulf of Thailand.
Bangchak recently signed a cooperation agreement with the US-based firm to be a co-venturer in Block G2/65, which covers an area of 15,030 square kilometres in the Gulf of Thailand.
Chevron was awarded a licence to explore and produce petroleum under a production-sharing contract signed with the Department of Mineral Fuels on May 30, 2023.
The move could pave the way for Bangchak to increase investment in the Asian petroleum business, according to industry observers, but it remains unclear whether the company will push ahead with similar projects in the region.
Bangchak declined to comment on regional expansion.
"We are reviewing the annual operation strategy of Bangchak Group," said a Bangchak executive who requested anonymity.
"Many factors will be considered before we announce our new strategic plan."
Bangchak entered the Asian upstream petroleum industry in 2014 by acquiring a majority of shares in Nido Petroleum, which operated Matinloc and Nido oilfields in the Philippines. Bangchak later decided to exit the investment in 2018.
In the same year, Bangchak shifted its interest to northern Europe to invest in Okea ASA, a Norway-based oil and gas drilling company, which operates a petroleum production facility at Draugen in the Norwegian Sea. Bangchak owns a 45.5% share in Okea ASA.
In 2019, the Matinloc and Nido oilfields ceased production after four decades of operations, according to media reports.
In 2025, Bangchak's wholly-owned BCPR partnered with Chevron to explore Block G2/65, one of three areas believed to be new petroleum sources in Thailand.
The Department of Mineral Fuels awarded another two licences for Block G1/65 and G3/65, spanning 20,133 sq km, to PTT Exploration and Production Plc in Round 24 bidding in 2022.
BCPR meets the criteria to be a co-venturer, said Prasert Sinsukprasert, permanent secretary at the Energy Ministry.
Under the collaboration, Chevron has transferred 30% of its rights and obligations to BCPR but will still serve as the operator of the project.
"This partnership aims to enhance the potential for petroleum resource exploration in G2/65, thereby contributing to the country's long-term energy security," said Mr Chaiwat.
