“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.
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.