FAQs

  • 1. For the performance guarantee, DMF requires an unconditional and irrevocable bank guarantee with 6-year validity? Please clarify :

    Answer :

    When the Ministry of Energy grant concession to the successful applicant, The successful applicant must provide the Department of Mineral Fuels with a performance guarantee to ensure the Ministry of Energy that the successful applicant is able to operate according to the obligations. 

    The performance guarantee is equal to the total proposed minimum expenditure obligations (work commitment and special advantages) for the six-year obligation period and must be an unconditional and irrevocable bank guarantee issued by a commercial bank with branches in Thailand which may consist of one or more guarantees totalling the proposed minimum expenditure obligations. The guarantee period must be at least six (6) years from the concession signing date. 

    The performance guarantee will be returned upon completion of the physical work and expenditure obligations, and payment of the special advantages. The concessionaire may request a reduction in the guarantee amount upon such completion and payment for a given year.
     

  • 2. Can commitments in one block be transferred to another block?

    Answer :

    Yes. The commitments in the exploration phase can be transferred to another block under section 33 of the Petroleum Act B.E. 2514 (1971) and Amendment. Besides, transferring commitments to another block must have an appropriate reason and shall be permitted by the Minister of Energy. 

  • 3. For the proposal of each block, do we need to put the technical and commercial / advantageous proposals in a separated sealed envelops? OR we can bundle them together in one proposal package submission?

    Answer :

    There are only 2 envelopes for the document submission PER ONE BLOCK:
     1) Qualification Documents
     2) Technical Proposal and Special Advantages
    Therefore, you can bundle the technical and commercial / advantageous proposals together in 'Technical Proposal and Special Advantages' envelope.
     

  • 4. Do you have scale to score the physical work and the special advantage? Is it based on the money to spend? How many Thai baths per marks?

    Answer :

    First question: Yes.  It is predertined and with clear scoring method.    However, the exact scoring method is confidencial.  In general, DMF would prefer work over money as reflect in work: special benefit ratio of 80:20.  For work, DMF would prefer work on the first obligation period (the first 3 year of exploration perion) over the first obligation period as reflected on the ratio 60:20.  About work obligation, DMF would probably would like seismic survey in an area with no or limited seismic surveys, and would like wells in area with significant seismic surveys. 

    Second question: Yes and no.  Yes, more work will require more money.  No, if two companies prosose the same amount of work and different amount of money, in the same obligation period, will get the same score.  For example, if company A proposes 2 wells with 6x2 Million USD and companies B proposes proposes 2 wells with 7x2 Million USD both in the second obligation period, both companies willl revieve the same score.

    Third question:  It is varied as mettioned in the first question.
     

  • 5. If there are 2 bidders offer same score, do DMF will ask those bidders to create a Joint Ventures company?

    Answer :

    DMF has multiple tiebreakers.  If the score is the same, DMF will use tiebreakers to determine the winner.  There is no case that DMF cannot select a winner becuse 2 companies have the score and same tiebreaker result.    Hence, DMF will be able select one winner and there will be no need to request bidders to create a Joint Ventures company.

  • 6. If a company fullfills work commitment, but spending money less than specified in the contract, does the company must pay the difference?

    Answer :

    Answer for short version is yes.  However, it is not likely to happen because 1) DMF specify value of work program base on lowest cost of actual case 2) a company can propose to spend the difference doing more work on the same block during the same obligation period.  
     

  • 7. Once we have submitted the data order form, how long to have it approved?

    Answer : 

    Generally, after DMF receives your order, it would take a few days for our staff to verify it and notify the client to proceed with the payment.

    Once DMF receives a payment confirmation from the client, it would take a few weeks to finalize the confidentiality agreement and issue a receipt.
     

  • 8. Will DMF consider to provide seismic acquisition reports and processing reports that currently not in the order form?

    Answer :

    DMF provide the data sets which we consider that they are sufficient for bidders to proceed with their bidding proposals.

    For the reports that not currently in our order form, you can directly contact dmfecommerce@dmf.go.th for more information.
     

  • 9. Will DMF provide all past survey data for the awarded block to operator?

    Answer : 

    The concessionaire has the right to request the access to petroleum data previously acquired by others within their own concession block under the rules of Department of Mineral Fuels.