BANGKOK: U.S. energy major Chevron Corp has decided to continue negotiations with Thailand rather than seek arbitration to resolve a dispute over who should pay the bill for removing offshore oil and gas platforms, the company told Reuters on Wednesday.
A spokesman for Thailand's energy ministry on Wednesday said he could not comment on talks with Chevron. Chevron is due to hand over operation of the Erawan gas field to Thailand's state-owned oil firm PTT Exploration and Production Pcl in April 2022 when its concessions expire. The new law would require Chevron to pay the future costs of decommissioning the assets it has installed, including those it transfers over to PTTEP.
Other operators in Thailand are watching the dispute closely in case it changes their future liabilities for assets in Thailand. Foreign investors in Thailand in other industries were also concerned about what precedent the case might set for the sanctity of their contracts.