4.688
%
Neutral
49
mm boe
19
%
The political uncertainty that had dominated foreign investment has been dissipated somewhat following the recent successful election. Nevertheless, a period of stability will increase confidence immeasurably.
February 4, 2024
Asia - South East
mm bbl
bcf
South eastern Asia, bordering the Andaman Sea and the Gulf of Thailand, southeast of Myanmar.
Multiple (PSC/Concession)
Concession-based fiscal system which has had three main variations over time, with the most recent terms known as the ‘Thai III’ regime. Thai III terms include royalty, additional profits tax (called the Special Remuneratory Benefit (SRB)) and corporate income tax. Royalty rates are incremental and based upon production rates, with discounting of rates for deep-water licences. SRB rates are uniquely based upon annual revenue and the cumulative metres of wells drilled on the concession area, with an adjustment for the geological complexity of the concession.
The Thai government is also actively pursuing foreign investment related to clean energy, electric vehicles, and related industries. Thailand is currently developing a new National Energy Plan that will set a 20% target for renewable energy by 2037. Revised plans are expected to increase clean energy targets in line with the Prime Minister’s November 2021 announcement during COP26 that Thailand will increase its climate change targets, as well as domestic policies focused on sustainability, including the “Bio-Circular Green Economy” model. Nevertheless, oil and gas remains a key focus for the country, especially its role in improving its balance of payments.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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