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Thai energy officials accused of making false claims of depleted supplies


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Energy officials accused of making false claims of depleted supplies
The Nation

BANGKOK: -- Two pressure groups on energy issues yesterday filed a complaint with the Ombudsman, requesting that the agency check if the country's top authorities on energy had committed constitutional offences.

The groups, led by Dr Kamolpan Cheewansri, submitted a petition to Sangad Pattawee, Office of the Ombudsman's Deputy Secretary-General.

The petition said Energy Minister Narongchai Akrasanee, Energy Ministry permanent secretary Areepong Bhoocha-oom and Department of Mineral Fuels director-general Kurujit Nakornthap may have committed constitutional offences by giving approval to the 21st round of bidding for petroleum concessions for 29 fields in 16 provinces.

They said the three officials made a false claim that oil and natural gas had been depleted and that as a result the government would be forced to increase the price of oil and cooking gas.

The petition said the officials did not follow due process and resorted to nepotism. Their actions were in violation of Article 4, 5 and 27 of the 2014 charter and Article 152 and 157 of the Criminal Code. They also accused the officials of distorting information for vested interests.

Kamolpan said according to reports released by Chevron, the size of natural gas excavation in Thailand is second only to the United States. The Department of Mineral Fuels' reports also showed that 84 per cent of land was yet to be explored, which was the opposite of what the three officials claimed.

The concessionaires' business operation report showed that they had made up to hundreds of billions of baht from Bt200 billion investment.

The latest concession also allowed the concessionaires to freely report how much fuel they had found without having to go through checks. She said the government must be able to check the amount of gas found so that it can opt to use ownership sharing with gas explorers.

Kamolpan claimed the officials distorted the truth regarding the price of cooking gas by saying that the gas cost was Bt20 per kilogram. She said reports released by the Department of Mineral Fuels showed that the cost was actually Bt9.5 per kilogram. Thailand can produce 79 per cent of its natural gas domestically and import 21 per cent.

PTT's subsidiaries have been able to buy natural gas at cheaper prices than the public. "This is a cover up regarding LPG gas. It is not right that the state uses resources that are supposed to belong to the public to support the petrochemical industry,'' she said.

Sangad said if the Ombudsman found the officials might have committed constitutional offences, it would seek a Constitution Court ruling.

National Reform Council (NRC) member Rosana Tositrakul yesterday praised Prime Minister Prayut Chan-o-cha for his decision to suspend the extension of the 21st round of bidding for petroleum concessions, pending the NRC discussion.

She said that the country had yet to resolve the business models to be used with oil companies. She said the decision must be made carefully because the extension of the contracts would result in the country having 39 years of legally binding commitment with oil companies.

She said Thailand should use the standard models adopted by other Asean countries.

She said the NRC might take about two months to come up with the right business model with oil companies.

She said the PM had been misinformed that energy could be depleted in eight years, which was not true. "The truth is concessions of the two energy sources would expire,'' she said.

NRC member Saree Aongsomwang supported the PM's decision to suspend the contract extension, saying the country must resolve conflicts on the energy issues before concessions were granted. Otherwise, it would be too late to correct what went wrong, she said.

The 21st round of bidding for petroleum concessions both on- and off-shore had been put on hold since 2012 because of the political turmoil.

Source: http://www.nationmultimedia.com/politics/Energy-officials-accused-of-making-false-claims-of-30246570.html

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-- The Nation 2014-10-30

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bidding for petroleum concessions

This is worth $$$ hundreds of millions to corrupt officials everywhere in the world. That's a fact. This, among other things, is why multinationals love corrupt governments so much.

Edited by razer
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"Kamolpan said according to reports released by Chevron, the size of natural gas excavation in Thailand is second only to the United States."

I would love to see that report. I am guessing it is also second to say Russia?

"The concessionaires' business operation report showed that they had made up to hundreds of billions of baht from Bt200 billion investment."

I bet the business operation report did not say they had made "hundreds of billions of baht". The report would be stating an exact figure.

"Kamolpan claimed the officials distorted the truth regarding the price of cooking gas by saying that the gas cost was Bt20 per kilogram. She said reports released by the Department of Mineral Fuels showed that the cost was actually Bt9.5 per kilogram."

How exactly would the Department of Mineral Fuels know the costs involved for the oil companies without relying on the (publicly available) balance sheets and exploration reports of the oil companies?

It all sounds like a bunch of unfounded claims, and that these people have proof of nothing.

"actually Bt9.5 per kilogram"...produced cost + Municipal tax + Excise Tax + Oil Fund + Conservation Fund + profit margin for retailers = THB 20.0kg me thinks. .thumbsup.gif

One suspects THB 9.5/kg referred to in the DMF report is what it costs the producers

further the comment on "the size of natural gas "excavation" in Thailand is either a misunderstanding, distortion or a misquote, in addtion to Russia, what about Qatar and few other places, Thailand gas production is not that high in the scheme of things on a worldwide basis, if it was so big, why the need to import from Burma, if I remember my numbers correctly nearly 20% of Thailands gas consumption is provided by Burmese gas ?

http://www.enerdata.net/enerdatauk/press-and-publication/energy-news-001/thailand-natural-gas-conundrum_29249.html

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Sometimes I wonder whether the activists are really dedicated to their work or just dedicated to being in the spotlight. Take for example Rosana who over the decade has been activist on health, environmental and now energy matters while being a senator. Just how did someone like her acquired all the expert knowledge to be an activist in such short time to made her contribution credible and contributory to society.

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I would like to ask expert-posters like 'monkeycountry' and 'Soutpeel' whether or not, in their personal opinion, outside of Dr Kamolpan's possibly disputable choice of words and arguments, the two pressure groups are correct in the motivation of their petition to the ombudsman, as, IMHO, what an esteemed person like Mrs Rosana has found necessary to declare as a member of the NRC, on top of the 'change of atitude' of PM Prayuth, who was quite, erm, 'bullish' at first in the way he urged the conclusion of new concessions, might possibly be interpreted as a sign there must really have been quite something wrong with the figures and material which were provided to him, and got him 'misinformed' to quote Mrs Rosana. When it would be so, one could ask oneself questions about the quality of the information which the 'innercircle' of top ministery officials and cabinet collaborators provides to the PM for him to fund his decisions on, the more so this is not the first time this happens to the PM, for a Lt General and former RTA chief there could be reasons enough there to hit the desktop with his fist and say that enough is enough and that he will not have it anymore for anyone to try and take advantage of him. It could eventually also make him want to get another close look at some other large posts, like Dawei and the rail infrastructure, wherein, maybe, possibly, he might also not have become the genuine, clear and unbiased intell he will for sure have been counting on... It is indeed no part of the principles of good governance to have a(nother) PM who could be easily mislead, manipulated or used, or, in a more 'politically correct' wording: 'misinformed', like Mrs Rosana would say...!

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Sometimes I wonder whether the activists are really dedicated to their work or just dedicated to being in the spotlight. Take for example Rosana who over the decade has been activist on health, environmental and now energy matters while being a senator. Just how did someone like her acquired all the expert knowledge to be an activist in such short time to made her contribution credible and contributory to society.

Couldn't of course expect you to write anything positive about Mrs Rosana, as she has never shown any sympathy for the shady practices the people you are a zealous propagandist of are reknown for...

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Sometimes I wonder whether the activists are really dedicated to their work or just dedicated to being in the spotlight. Take for example Rosana who over the decade has been activist on health, environmental and now energy matters while being a senator. Just how did someone like her acquired all the expert knowledge to be an activist in such short time to made her contribution credible and contributory to society.

She didn't, she just throws some random accusations based on nothing, and hopes the various agencies will follow up on it. Worst case noone follows up but she still gets to delay everything.

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Good luck with the new ombudsman.

He is General Wittawat Ratchatana (Former Deputy Permanent Secretary for Defense and Director-General of the Defense Information and Space Technology Department, Director of the Office of Policy and Planning for Defense and Deputy Permanent Secretary for Defense), probably recommended by General Prayut. If Gen. Prayut wants to sell the oil & gas concessions, I wouldn't expect the Ombudsman to oppose it.

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<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Rosana is very knowledgeable and have been to the USA to see what gas and oil is sold there. They are obviously cheaper than thailand.

No its generally cheaper but some States its more. Canada pays a lot more at the pumps and we have plenty to export.

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<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

Rosana is very knowledgeable and have been to the USA to see what gas and oil is sold there. They are obviously cheaper than thailand.

No its generally cheaper but some States its more. Canada pays a lot more at the pumps and we have plenty to export.

And this is very easy to explain its called taxation, the vast majority of the cost of 1 liter/ 1 gallon of fuel comes from the excise tax placed on it by the GOVERMENT in a particular country.

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Reading the news it seems there is misinformation, disinformation and misunderstandings everywhere in Thailand. Of course we are not allowed to discuss it in case someone, anyone really, loses face. The nonsense and ignorance that is exhibited by the people who rise to the top through corruption, buying their way into positions rather than being actually qualified to do them, is really shocking. But SHHHHHHHHH. Don't let the world know because it might cause a rift!

Why not do the job properly and make all Thais the happy lovely people they were born as without the terrible effects of those foreign inventions like smart phones and the internet, by stopping all the newspapers and internet news outlets, ban all forums and meetings down the pub of more than four people and just publish a simple free newsletter where the wonderful Thai people can get their news for free and learn all about what the top corrupt people want them to know.

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