EconomyEditor's PickNewsChevron says resumes arbitration over Thai gas field

1 year ago95 min
imageStock Markets20 minutes ago (Oct 02, 2020 07:20AM ET)

(C) Reuters. An entrance sign at the Chevron refinery, located near the Houston Ship Channel, is seen in Pasadena

BANGKOK (Reuters) – U.S. energy major Chevron Corp (N:CVX) has resumed arbitration proceedings with Thailand to resolve a dispute over who should pay for removing offshore oil and gas platforms in the Erawan gas field, the company told Reuters on Friday.

“While the arbitration is regretful, it is necessary to clarify the requirements of the concession agreements,” a company spokesman told Reuters.

The Thai energy ministry was not immediately available for comment.

The move came a year after the company had suspended the legal process to allow more time for talks with Thailand’s energy ministry, ahead of the expiration of its concession in April 2022.

Thailand wanted Chevron to pay the full decommissioning costs, estimated at around $2 billion, for all infrastructure it had installed at the Erawan gas field, including assets it will hand over to the next operator, Thai state oil firm PTT Exploration (OTC:PEXNY) and Production Pcl (BK:PTTEP).

Chevron argues that under the terms of its initial contracts from 1971 it is only liable for infrastructure that is no longer deemed usable before it hands over the field to another operator.

Chevron says resumes arbitration over Thai gas field

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