Key Takeaways
- Energy: the Cabinet awarded three onshore oil-and-gas exploration licences and cleared the sale of a 40 percent stake in two Gulf of Thailand blocks. Done.
- EEC land: the Cabinet approved rules letting the EEC office buy, or compulsorily acquire, land for its projects. Still a draft.
- Insurance: the state's household disaster-insurance scheme is approved and funded at 15.5 billion baht, with cover set to begin on 1 October 2026, though the insurers have not yet been chosen.
- Trade: the upgraded ASEAN goods-trade agreement will start applying early, before it formally takes effect on 1 June 2027.
1. Thailand awarded new oil-and-gas blocks and cleared a Gulf ownership change.
Done. These are final Cabinet approvals. The Cabinet awarded three onshore exploration-and-production licences from the 25th licensing round: two blocks (L1/66 and L3/66) to PTTEP International Limited, and one block (L8/66) to Pan Orient Energy (Siam) Limited together with CanAsia Energy Corp. It separately approved the sale of a 40 percent interest in two Gulf of Thailand blocks (G1/65 and G3/65) by PTTEP Energy Development Company to Valeura Energy (Chaiyaphruek) Limited under the Petroleum Act B.E. 2514 (1971); after the sale PTTEP keeps 60 percent and Valeura holds 40 percent, and the state's royalties and petroleum tax are unchanged. The onshore licences resolve disputes by arbitration, on the standard government form.
Action: energy companies and their joint-venture partners should note the new licence holders and the Gulf ownership change; anyone contracting with the onshore licence holders should note that disputes are settled by arbitration.
2. The EEC can now buy, or compulsorily acquire, land for its projects.
Still a draft. The Cabinet acknowledged draft rules from the Eastern Economic Corridor (EEC) Policy Committee, so they are cleared to be finalised but are not yet in force. Made under Section 11(7) and Section 34 of the Eastern Special Development Zone Act B.E. 2561 (2018), the rules set out how the EEC office may obtain land for its projects, by purchase, lease, exchange, or compulsory acquisition (expropriation), and how it may then use that land. Before any land is taken, the EEC office must propose a project to the EEC Policy Committee, and an independent panel of up to seven people must study the site, the cost, and the impact.
Action: companies siting projects on EEC land, and landowners near planned EEC developments, should note that the EEC office is putting in place a power to acquire land, including by compulsory purchase, and factor it into due diligence.
3. The household disaster-insurance scheme is funded and due to start on 1 October.
Approved and funded, with cover due to begin on 1 October B.E. 2569 (2026); the insurers have not yet been chosen. The Cabinet approved the policy terms and a premium budget of 15.5 billion baht for a scheme in which the state buys disaster cover for the public against three risks, flood, windstorm, and earthquake: 15 billion baht for household-property cover and 500 million baht for personal-accident cover, running to 1 October B.E. 2570 (2027). The Office of Insurance Commission (OIC), with the Thai General Insurance Association, will still need to select the insurers, and the Department of Disaster Prevention and Mitigation (DDPM) will pay the premiums. Cover is up to 100,000 baht per household per event, with a 2 million baht death benefit. Importantly for business, the scheme covers homes only, not commercial or industrial property.
Action: because the scheme protects households only, companies with commercial or industrial sites in flood, storm, or earthquake zones should confirm their own catastrophe cover is in place; insurers and brokers active in Thailand should watch for the OIC and Thai General Insurance Association selection of insurers ahead of 1 October.
4. The upgraded ASEAN goods-trade agreement will start applying early.
Approved to endorse; the upgrade formally takes effect on 1 June B.E. 2570 (2027). The Cabinet approved Thailand joining a declaration that will apply the upgraded ASEAN Trade in Goods Agreement (ATIGA) early, before that date. The upgrade modernises the agreement and adds new chapters, including on trade and the environment and on trade during crises; all ten ASEAN members signed it on 1 December B.E. 2568 (2025) and Thailand's Parliament approved it on 17 June B.E. 2569 (2026). ASEAN trade ministers are expected to endorse the early-application declaration on 19 September B.E. 2569 (2026). Tariffs on almost all goods traded within ASEAN are already zero, so the changes are mainly to customs procedures and to the rules that decide whether goods count as ASEAN-made.
Action: importers, exporters, and manufacturers with ASEAN supply chains should check the upgraded agreement's customs and origin-rule changes against their goods and watch for the early-application start after the 19 September endorsement.
On the Watch list
- ASEAN competition framework: the Cabinet approved Thailand signing the ASEAN Framework Agreement on Competition (AFAC); nine of the ten members have already signed. It is a cooperation framework and creates no new competition rules in Thailand, operating within each country's existing law. It signals closer competition-enforcement cooperation across ASEAN, worth monitoring for multinationals that operate region-wide.
- AI and jobs: the Cabinet approved an APEC labour-ministers' statement, with an annex on managing the effect of artificial intelligence on employment. It is a policy statement, not a binding rule, but it is a useful signal of where regional labour policy on AI is heading.
Also Worth noting
The Cabinet approved a 2,088.56 million baht upgrade of the fourth generating unit at the Sirikit Dam hydropower plant; approved an Asian Development Bank loan for the public-health service system; approved the framework of the 14th National Economic and Social Development Plan for B.E. 2571 to 2575 (2028 to 2032); and made senior appointments.
Where we can help
Our Corporate and Litigation teams advise on the petroleum licences and the Gulf ownership change, including the arbitration terms, and on EEC land acquisition and compulsory purchase. Our Corporate and Tax teams advise importers and exporters on the ASEAN trade upgrade and customs, and multinationals on the ASEAN competition framework. Our Banking and Finance and Corporate teams support companies and bidders on the government disaster-insurance scheme. To arrange a consultation, contact [email protected].
Disclaimer: This publication is intended for general informational purposes only and does not constitute legal advice. The information contained herein should not be relied upon as a substitute for specific legal counsel. For advice tailored to your circumstances, please contact Dej-Udom & Associates directly.