Amendment saves petroleum bid deadline

PETROLEUM BID
Amendment saves petroleum bid deadline
Watcharapong Thongrung
The Nation

BANGKOK: -- The Mineral Fuels Department has reduced resistance to the 21st petroleum concession auction by adding a condition that the government can introduce a production-sharing contract for three potential concession blocks within the first four years so that it can still keep the February 18 deadline for bid submissions.

Puangthip Silpasart, director-general of the department, said yesterday that to comply with the energy reform policy of the government and a suggestion from the National Reform Council, the energy minister had agreed to add the conditions to the bidding and signed off on them on Tuesday.

The amendments include a requirement for every bidder to allow the ministry to disclose its proposal, projects and monetary and work obligations after the consideration is finished.

Another condition is the possibility for the government to bring in the production-sharing regime for the G3/57, G5/57 and G6/57 blocks to be suitable for the petroleum potential of these blocks.

"The government may exercise its right to inform the bid winners to negotiate and agree to the changed criteria regarding benefits, rights and duty to abide with the policy to bring in production sharing or any other system," Puangthip said.

"Both parties must negotiate for concluding an agreement with fairness and comply with the existing contract under the criteria, method and conditions in law that will be drafted later.

"The government has to exercise its right within the first four years of the exploration period," she said.

Petroleum exploration and production companies that had expressed interest in submitting bids this time had understood the situation of Thailand with regard to the opening of the 21st petroleum concession round.

This change would not affect their decision-making because they still have time to consider it in detail since during the previous rounds, companies usually submitted their proposals in the last week, she said.

Source: http://www.nationmultimedia.com/business/Amendment-saves-petroleum-bid-deadline-30253505.html


-- The Nation 2015-02-06