Thai energy reform: Legal bid to suspend sale of fuel concessions

[webfact]

ENERGY REFORM
Legal bid to suspend sale of fuel concessions
Wasu Vipoosanapat
The Nation


Bannawit Kengrien, left, and Srisuwan Janya, second left, submit their petition to an official at the Central Administrative Court yesterday.

Srisuwan appeals for court injunction against proposed bids for oil and gas concessions until reform sorted out

BANGKOK: - REFORM in the energy sector is caught in a bind, as rival groups are at loggerheads on the issue of new concessions - with the state agency rushing to grant drilling concessions and a civil society group heading to court to block the move until reforms are introduced.

Activist Srisuwan Janya, along with more than 100 people, yesterday gathered and filed a petition at the Central Administrative Court, seeking an injunction against opening the 21st round of bidding for petroleum concessions.

The move came after the National Energy Policy Council (NEPC), at a meeting last week, approved the 21st round of bidding for petroleum concessions in 29 fields in 16 provinces, both on- and off-shore, which had been put on hold since 2012 because of the political turmoil.

"The energy belongs to all people, not to any group. The bidding for concessions should get a public hearing first so that the energy reform can be proceeded with efficiently," said Srisuwan, president of the Stop Global Warming Association.

"I don't think we have to hurry up the bidding for petroleum concessions. We should wait for discussions on this matter in the National Reform Commission first," said Srisuwan, who is also secretary-general of the Constitution Protection Association.

Srisuwan yesterday sought an order from the Central Administrative Court to enforce the NEPC, Energy Minister and Department of Mineral Fuels' director general to suspend or revoke the department's announcement involving the opening of the 21st round of petroleum exploration and production.

The council is chaired by Prime Minister General Prayut Chan-o-cha.

It also asked the court to order the defendants to hold public hearings on the bidding. The defendants will also have to suspend or cancel the process of inviting tenders until the case is decided.

Meanwhile, Rosana Tositrakul, a National Reform Commission member, recently said she disagreed with the opening of the 21st round of bidding for petroleum concessions. She feared this would open the nation's energy resources to large energy firms, local and international.

She said Thailand had become like a condominium that was booked and traded by others, citing the trading of the country's Nongyoa and Manora petroleum offshore fields in the Singapore market, which yielded a profit of Bt5 billion to one of the parties.

She questioned whether Thailand should maintain the concession system for petroleum auction.

Petroleum concession has been one of the hot issues in energy reform for a long time before the military coup toppled the previous government. Rosana, Srisuwan and many associates in civic groups have championed reform in the energy sector during protests against the previous government of Yingluck Shinawatra.

They have been disappointed that the pro-coup protesters and the junta did not have a policy different from the Yingluck government to allow a monopoly of energy by big firms.

Prime Minister Prayut had said earlier that it was necessary to open the bidding for petroleum concession because the exploration would take time. Many fields had drawn a blank. "The government cannot subsidise everything. If we did that [now it subsidises rice, gas and rubber prices], the country might be not be able to move forward," he said.
Source: http://www.nationmultimedia.com/politics/Legal-bid-to-suspend-sale-of-fuel-concessions-30246399.html


-- The Nation 2014-10-28

[BSJ]

The opposers (new word) have an alternate plan for energy, yes? I am kinda guessing they secretly believe in alien's and hope that one day their alien friend's will come to Thailand and bring bucket loads of their super fuel (as a gift) and the whole of Thailand will be run forever and ever without any petroleum. The End

[IMA_FARANG]

There is potentially a LOT of money involved here.

Many billions of Baht.

This touches right at the heart of the "high so" big money culture in Thailand, and this battle could get nasty.

[Robby nz]

Fair enough the country needs to be able to use the gas and oil that's down there but lets do it properly.

There has been much talk about transparency and fairness so put this into practice.

The people in the places where the onshore concessions are need to be consulted and informed before anything is done and everything should be clearly stipulated with the country and the people being the ones to reap the benefits not the big companies.

[Chris Lawrence]

Sounds like sour grapes. Some company other than Thai Company investing a lot of money in exploration making money from the oil produced? How dare they.

If they want it they should do the preliminary work in finding the fields? But that would cost them money?

[monkeycountry]

I bet the same group is also opposed to higher energy prices

I understand they do not want any of the large oil companies to make a profit on energy that correctly belongs to Thailand. However, I wonder if they can supply a list of small oil companies who can dish out a few billion dollars which the exploration typically costs. I also wonder if they know of any oil companies who are willing to risk a few billion dollars if they are not allowed to make a significant profit in case they actually find any oil?

Thailand could of course just do the exploration on it's own, pay for everything, take all the risk, and keep all the profit if any. Anyone in government willing and capable of undertaking such a project? No.

Does Thailand have a vehicle to do this? Yes, it is called PTT, but then we are back to the large oil companies.

At the end of the day Thais and Thailand will just have to understand that the only ones with both expertise and financial means to drill for oil are large oil companies, and naturally they will only risk losing alot of money if there is a good chance they can make even more money.

Further, no drilling means more imports, which means higher energy prices.

[monkeycountry]

Fair enough the country needs to be able to use the gas and oil that's down there but lets do it properly.

There has been much talk about transparency and fairness so put this into practice.

The people in the places where the onshore concessions are need to be consulted and informed before anything is done and everything should be clearly stipulated with the country and the people being the ones to reap the benefits not the big companies.

If the people are to reap the benefits, then they should also take the risk right?

Do you know anyone in Thailand with the money, material and knowhow to undertake such a project? and who is willing to take the risk? PTT can and will likely do all that, but I doubt they are willing to take all the risk, if they are not allowed to reap any benefits.

Also, while I agree with consulting everyone, everyone needs to understand that the oil they fill their cars with has to come from somewhere, and if it is not from Thailand, then it has to be imported, and if that is what they want, then they have to stop moaning everytime the prices go up.

[rickirs]

Have these people come from another planet?

- Janya filed a petition at the Central Administrative Court, seeking an injunction against opening the 21st round of bidding for petroleum concessions.

- The order “… also asked the court to order the defendants to hold public hearings on the bidding. The defendants will also have to suspend or cancel the process of inviting tenders until the case is decided.”

Coup leader Gen. Prayut and his NCPO holds absolute power over all governmental elements, including the courts, under Article 44 of the NCPO’s Interim Charter. His decisions are LAW and not subject to contest or appeal. What judge, who wants to remain a judge, is going to issue an order against Gen. Prayut’s decision to open the oil and gas concessions for bidding? Such a judge will not contribute to the Happiness desired by the Junta, only serve to create conflict for the nation, and find himself before a military court.

But the real story is not about environmental impact or energy reform. It’s about pumping billions of baht from sale of the concessions immediately into the Thai economy to spur economic growth for 2015. Without this financial injection, the current Junta government economic policies alone may cause the nation to face an economic collapse in 2015. That would in turn severely affect the PM’s/NCPO’s creditability to lead the country. Thus, Gen. Prayut’s statement:

“… it was necessary to open the bidding for petroleum concession because the exploration would take time. Many fields had drawn a blank. "The government cannot subsidise everything. If we did that [now it subsidises rice, gas and rubber prices], the country might be not be able to move forward," (my underlined emphasis)

[Robespiere]

Energy policy is going to be the thing that rips apart from within the flimsy right wing coalition that has usurped power and muffled democracy in this land!

[webfact]

Cabinet orders public clarification of latest petroleum concession bidding plans
By Digital Content

BANGKOK, Oct 28 -- Thailand's cabinet has ordered the Energy Ministry to explain a possible natural gas shortage crisis to the public in response to opposition to the 21st round of contested bidding for petroleum concessions.

Areepong Bhoocha-Oom, permanent secretary of the Energy Ministry, said Prime Minister Prayut Chan-o-cha ordered the urgent explanation today when the cabinet was briefed on the government’s invitation for bids for concessions on 29 petroleum blocks.

Mr Areepong said that the 21st bidding round had been delayed for seven years while Thailand’s demand for natural gas for electricity generation stood at 1.8 trillion cubic feet per year or about 5 billion cubic feet per day.

Without domestic exploration and production on the 29 blocks, he said, Thailand must import gas, and electricity fees will rise 30 per cent from 4 to 6 baht per unit.

Kurujit Nakornthap, deputy permanent secretary for energy, denied the petroleum exploration and production invitation involved an overlapping area between Thailand and Cambodia.

The blocks were 100 per cent in Thai territory and did not encroach on any forest reserves or national parks, he said.

“If exploration and production are promising in the blocks in the Northeast, they will boost the local economy and create more than 20,000 jobs in related businesses,” Mr Kurujit said.

He added that bidders could form consortiums to vie for the concessions because investment would reach about Bt10 billion.

Interested parties have 6-8 months to place their bids and in the meantime the Energy Ministry is willing to listen to fact-based opinions from concerned parties and the National Reform Council before the government approves the concessions early next year, Mr Kurujit said. (MCOT online news)


-- TNA 2014-10-28