Prayut calls for peaceful talks to resolve energy security conflicts

[Lite Beer]

Prayut calls for peaceful talks to resolve energy security conflicts

BANGKOK: -- Prime Minister Prayut Chan-o-cha stressed the need for energy security but also to ensure that all conflicting ideas on petroleum concession opening be resolved through peaceful talks on the tables.

He said he would like to see that no conflicts be widened at the talks as the law on petroleum exploration is in the amendment process.

Speaking on his weekly “Returning happiness to the people”, TV programme, he pledged that amendment of the law would not take more than three months, and concession could open after all could reach agreement for the sake of national interest.

The Energy Ministry yesterday officially called off the 21st round of petroleum exploration and exploitation concession auction, pending amendment to the existing Petroleum Act is finalised as called for by civic and energy activist groups.

The National Legislative Assembly has been assigned to amend the 44-year old petroleum law in three months’ time.

Activist groups have contended that they are not against the bidding but they wanted the law to be amended first to ensure fairness and better benefits for Thailand regarding the exploitation of oil and gas of both offshore and onshore.

The prime minister also pledged to improve transport connectivity between the country and its ASEAN neighbours saying connectivity would drive the country to a true regional centre.

Progress had been made in the development of the nation’s rail system with linkages be created between Thailand and other countries in the region, making the kingdom a true regional hub.

Gen Prayut said there would be two projects establishing dual-track and 1-metre-gauge rail lines. The first involves six urgent sub projects that will span a total of 903 kilometres and are slated for implementation this year. They include three routes where environmental impact assessments (EIAs) have already been completed and where associated land expropriation bills have been approved.

Gen Prayut also raised the current Buddhism conflict saying he has designed his deputy Dr Wisanu Krue-ngam to look after the issue which he said was delicate.

He asked that all sides not to overlap one another and anything which is against the law should also be dealt with accordingly and be accepted.

He would like the issue resolved with transparency and conflicting groups avoid resorting to rallies to pressure and create disturbance in the country again.

Source: http://englishnews.thaipbs.or.th/prayut-calls-for-peaceful-talks-to-resolve-energy-security-conflicts

-- Thai PBS 2015-02-28

[angsta]

“Returning happiness to the people”

Gets me every time.

[Chris Lawrence]

When is the General going to start a actual program?

Everything seems to be stuck in committee stage?

With petroleum what is it they actually want? A contract that reflects only in favour of the lessor? Maybe they want to minipulate the market like a rice contract?

[NeverSure]

They want to sell oil exploration rights where there is very little likelihood of finding much oil. They want someone else to pay for the exploration, and then have that benefit Thais more.

They want investors to do this exploration "for the benefit of Thais" at a time when many oil wells are shutting down due to very low world oil prices.

They've already had a couple of aborted bidding starts which I suspect means they had no takers, or no takers willing to suffer Thainess.

[Srikcir]

"create disturbance in the country again."

It will be interesting to see Buddhist monks being taken to a military base for attitude adjustment visits. Prayuth misses no one when it comes to using his power as the nation's leader. Every Thai needs to know his or her place in Thai society and how to behave and think in that place. The government will take care of all problems. Citizens need not to think or act beyond the boundaries created by the elite. Thailand is becoming again a classical oligarchy with a small concession to democracy to please the average Thai people.The elite remain secure in their Rule.

[lildragon]

“Returning happiness to the people”

Gets me every time.

Wait. His show is actually called that? I thought it was a forum in joke!

[Srikcir]

"they wanted the law to be amended first to ensure fairness and better benefits for Thailand"

The whole issue of legislating more options for sale of oil & gas concessions is a relatively minor matter and laws should have been amended after the very first concession sales. But unfortunately, some people have become radicalized over the issue by taking more nationalistic attitudes. Gen. Prayuth in turn is over reacting in a typical single mindless military manner that further exagerates the issue.

Much of the terms of concession sales is out of Thailand's control, no matter who is governing the counrty or what system of government is used. Global oil & gas companies are driven by technology for their costs and by the market for their profit margins, not by any government. They are driven by the needs of their shareholders. Companies could care less about the needs of any government - it's all about money. Companies have no concern about "thainess" or Gen. Prayuth's 12 values.

The government should be driven by the amount of risk it takes for the benefit it receives. When a government tries to force companies to take high risks with little or no profit margins, and take almost all revenues, there will be no sales. Marketing is a self-balancing process. Thailand is a net energy importer and the value of oil & gas is at all-time lows, so the delay has no negative impact on the economy. No matter what concession system is used, exploration and development of the reserves is born entirely by the companies. Again the delay has no negative impact on the economy.

Amendment of the law to include Production Sharing agreements may or may nor ensure fairness and better benefits. Why? Because it's in the "eye of the beholder" and that cannot really be legislated. The amendment only provides another sales option. It cannot create smart negotiators, precise legal language, nor appropriate cost and profit formulas.The amendment has no impact on the market price nor on the production technology. It cannot change the geology of oil formations.