Thai govt decides to go ahead with petroleum concessions

[webfact]

Govt decides to go ahead with petroleum concessions
Watcharapong Thongrung
The Nation

BANGKOK: -- The government will go ahead with the 21st petroleum exploration and production bidding round to preserve national dignity and maintain the trust of foreign investors, Energy Minister Narongchai Akrasanee said yesterday.

The Ministry of Energy's decision to go ahead with the process and maintain the February 18 deadline for bid submissions comes despite the National Reform Council voting this week to have it scrapped.

Narongchai said the government had to preserve the country's dignity and prevent it from losing credibility internationally because the bidding phase had already been announced.

However, he said his ministry was prepared to listen to the opinions of NRC, an advisory institution according to Article 27 of the interim constitution.

"I would like to reaffirm that this concessionaire system is suitable for Thailand, which has little resources, which means risk," he said.

"Under this system, the find of a small petroleum field will be worthwhile for investment. But if a large field is found, it is even better."

Regarding the concessions of Chevron, which expired on 2022, and PTT Exploration, which expired in 2023, Narongchai said the ministry was considering what to do and would make a decision this year.

He said he would ensure the country benefited as much as it could, which could result in the government operating the fields itself, contracting private companies to do it or pursuing other methods.

The ministry's permanent secretary, Areepong Bhoocha-oom, said the 21st concession round would be conducted based on international standards and transparency under the so-called Thailand Three Plus scheme.

Under the scheme, income after expenses is shared by the state (72 per cent) and private sector (28 per cent).

Areepong said the ministry would listen to the NRC's opinions on the details of the scheme and would appoint five experts in the areas of tax, industry, law and anti-corruption to sit on the petroleum board to create transparency and trust.

He said the ministry was conducting an auction to hire one of the world's four largest accounting firms to audit the works of concessionaires in every aspect in a bid to solve suspected false reporting even though the Mineral Fuels Department's system was up to standard.

In a related development, yesterday's meeting between the government, the National Reform Council (NRC) and the Constitution Drafting Committee (CDC) agreed to set up a joint panel to foster better coordination between them, NRC member Alongkorn Ponlaboot said.

Deputy PM Wissanu Krea-ngam, NRC president Thienchai Kiranan, CDC chief Borwornsak Uwanno and chairpersons of the NRC's 18 committees attended the meeting. The meeting was prompted by some recent hiccups in the work of the three parties.

"The meeting agreed to set up a coordination committee so that all the parties can work more closely. This is aimed at maximising efficiency and ensuring that national reforms continue in a quick and concrete manner," Alongkorn said.

Source: http://www.nationmultimedia.com/business/Govt-decides-to-go-ahead-with-petroleum-concession-30252010.html


-- The Nation 2015-01-16

[Don Aleman]

I would be suspect of the sanity of anyone bidding on Thai government contracts which, at best are vague and likely to change after acceptance plus earlier explorations, paid for, at huge bidder expense, indicated little, if any reserves to tap.

[webfact]

Energy minister to push ahead with oil concession bidding

BANGKOK: -- Energy Minister Narongchai Akaraserani has announced that he will not change his mind on the bidding of the petroleum exploration concession claiming that the concession system is most suitable for Thailand.

“There will be no changes to the schedule (of the bidding). We will have to keep the honour of Thailand otherwise we will lose our credibility,” said the minister who, however, added he would take into consideration all the proposals of the National Reform Council.

The National Reform Council last week voted to reject its energy reform panel’s support for the bidding which is now under way until January 18. The council also proposed that production sharing system should be applied instead of the concession system.

But Mr Narongchai said that the proposed production sharing system had to wait as the bidding process would proceed and there was no time to consider the NRC’s proposal now.

Ms Rosana Kositrakul, deputy chair of the NRC’s energy reform panel oil and a staunch opponent of the bidding said that if the government would not listen to the NRC, it should not have sought the opinion of the NRC from the start.

Source: http://englishnews.thaipbs.or.th/energy-minister-push-ahead-oil-concession-bidding

-- Thai PBS 2015-01-16

[brucec64]

When a rubber stamp assembly fails to rubber stamp, they are promptly ignored, showing where the true power lies.