Declining global oil prices will not affect next petroleum concession

BANGKOK, 15 December 2014 (NNT)-The Ministry of Energy is confident the declining global oil prices will not affect the 21st petroleum concession.

According to Energy Minister Narongchai Akrasane, the falling global crude prices, now quoted at around 60 US dollars per barrel, will not deter the concession applicants as investors are after long term investments. The bidding process will begin on 18 February, 2015.

The Minister added that it would take at least 9 years before any crude oil is found, and the global oil prices will likely have increased by then.

He further explained that the next concession would be carried out under Thailand 3 plus System, which fit Thailand’s petroleum industry. The small-sized drilling areas would also allow investors to easily assess their risks.


-- NNT 2014-12-15

One thing is for sure anybody that takes up a concession , there is no hurry to develop the resource , if found, possibly for some time.

The Energy Minister may want to review the concession budgets that many oil companies have barely funded for the next year or so. Simesic vessels, and other data search and recording equipment are being mothballed, crews laid off, oil company downsizing has been going on for a few months and is orojected to increase in volume for some time into the future.

The oil sector is one of the few who have always made quick adjustment to oil price increase and especially any decrease. They know how have watched the cycle work for a long time. The equipment can be shut down upon completion of current operations and the people put on extended leave or laid off.

The offshore utilization of rigs has dropped by 5% in the past month.

The statement that applicants for concessions will not be detered is iffy, but what about, what will they pay, and that seems to have been ignored.

If I was a betting man I would bet they are wrong on that. It might not kill the deal but it will hurt the bids.

Why is it that only shareholders and governments are concern about the decrease of oil prices, not making fuel cheaper for people around the world to have a better life. Here in Thailand where min. wage is 300baht per day which means they have alittle more money in their pocket, same as other countries. The shops, food industry, childern don't go so hungry. Screw Corportions!

I think they had more money left in their pocket when the min wage was 200 baht.

So the price per barrel dropped from over 110 US$ to 60 US$. the pump price in Thailand is still around 30 THB per liter for the diesel per liter, is this the gravy on the potatoes for the new rulers or?

If I was a betting man I would bet they are wrong on that. It might not kill the deal but it will hurt the bids.

Agreed, if anything is found worth developing, then its value just dropped dramatically.

How can this not affect how much companies are likely to bid for a concession ?

How can it not reduce the likelihood of their developing the smaller or more-inaccessible deposits ?

And if the Energy Minister knows what future world-prices for oil will be, shouldn't he be a billionaire, on his knowledge and wisdom ?

Sometimes government tax and subsidies are good thing

I love it that diesel fuel is fairly constant about 30 baht and only up and down a slight bit.

The downturn in the set, however slight it ended up is indicative of the high value Baht as the country lives on the continuing import of capital

Regards