Thai PM urged to exercise Section 44 to amend energy related laws

[webfact]

PM urged to exercise Section 44 to amend energy related laws



BANGKOK, 10 April 2015 (NNT) – Civic groups have called on Prime Minister General Prayut Chan-o-cha to use his power under Section 44 of the interim constitution to amend the 1971 petroleum act and the 1971 petroleum tax collection act, and bring in a production-sharing contract instead of holding the 21st round of petroleum exploration concession auction.

The call was made at a seminar on national energy direction participated by public and private sector representatives yesterday. The meeting suggested the government work on the production sharing formula and other similar schemes instead of holding the 21st auctioning for petroleum concession.

The meeting also asked the government to use proceeds from the petroleum products worth around 500 billion baht annually to establish 5 funds as follows: agricultural development fund, workers and marginalized labor assisting fund, education development fund, quality of life, water & environment development fund and public & social welfare development fund.

It is expected that the 5 funds will help address social gaps and boost local economy.


-- NNT 2015-04-10

[JOC]

What about lowering the price at the pump??

But of course that wouldn't create the golden opportunity for further corruption........

[Chris Lawrence]

'In production sharing agreements the country's government awards the execution of exploration and production activities to an oil company. The oil company bears the mineral and financial risk of the initiative and explores, develops and ultimately produces the field as required. When successful, the company is permitted to use the money from produced oil to recover capital and operational expenditures, known as "cost oil". The remaining money is known as "profit oil", and is split between the government and the company, typically at a rate of about 80% for the government, 20% for the company. In some production sharing agreements, changes in international oil prices or production rate can affect the company's share of production.

Production sharing agreements can be beneficial to governments of countries that lack the expertise and/or capital to develop their resources and wish to attract foreign companies to do so. They can be very profitable agreements for the oil companies involved, but often involve considerable risk.' http://en.wikipedia.org/wiki/Production_sharing_agreement

Instead of dealing with a lot they want to limit the contracts to a few? That is what it sounds like.

'In 2013 Thailand’s gas output was 4 billion cubic feet, while petroleum production was 459 000 barrels per day. Most of the country’s output is in gas due to the large, proven reserves relative to other energy sources available in the country. However, the country still needs to import 30 per cent of its gas from Myanmar through pipelines and LNG purchase with 85% of crude oil from overseas.' http://www.austrade.gov.au/Export/Export-Markets/Countries/Thailand/Industries/Oil-and-gas#.VSeAdZPc6HQ

PTT appears to be a winner for this type of arrangement; February 2015, PTT Exploration and Production reported its first quarterly net loss in 16 years, with a reported net loss of US$739 million for the October-December 2014 quarter.

[Srikcir]

I want water to flow upstream to all the drought areas. Please invoke Article 44 NOW.

[Srikcir]

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'In production sharing agreements the country's government awards the execution of exploration and production activities to an oil company. The oil company bears the mineral and financial risk of the initiative and explores, develops and ultimately produces the field as required. When successful, the company is permitted to use the money from produced oil to recover capital and operational expenditures, known as "cost oil". The remaining money is known as "profit oil", and is split between the government and the company, typically at a rate of about 80% for the government, 20% for the company. In some production sharing agreements, changes in international oil prices or production rate can affect the company's share of production.

Production sharing agreements can be beneficial to governments of countries that lack the expertise and/or capital to develop their resources and wish to attract foreign companies to do so. They can be very profitable agreements for the oil companies involved, but often involve considerable risk.' http://en.wikipedia.org/wiki/Production_sharing_agreement

Instead of dealing with a lot they want to limit the contracts to a few? That is what it sounds like.

'In 2013 Thailand’s gas output was 4 billion cubic feet, while petroleum production was 459 000 barrels per day. Most of the country’s output is in gas due to the large, proven reserves relative to other energy sources available in the country. However, the country still needs to import 30 per cent of its gas from Myanmar through pipelines and LNG purchase with 85% of crude oil from overseas.' http://www.austrade.gov.au/Export/Export-Markets/Countries/Thailand/Industries/Oil-and-gas#.VSeAdZPc6HQ

PTT appears to be a winner for this type of arrangement; February 2015, PTT Exploration and Production reported its first quarterly net loss in 16 years, with a reported net loss of US$739 million for the October-December 2014 quarter.

I disagree with PSA's for Thailand. Concession Sales Agreement are least prone to corruption because of their greater transparency versus PSA's and are better suited for a net energy importer like Thailand - a lesson Indoneasia learned the hard way. There are also far less economic risks with Concession Sales Agreements, especially if there is a high incidence of dry holes as experienced historically in Thailand offshores.

But regardless of the agreement used, the bidding should be delayed until oil has reached $70 per barrel. Otherwise, Thailand is just wasting an unrenewable resource for a limited return.

[soalbundy]

I want water to flow upstream to all the drought areas. Please invoke Article 44 NOW.

Ah, section 44

As someday it may happen that a victim must be found

I've got a little list, i've got a little list

of society offenders who might well be underground

and who never would be missed, who never would be missed

[NongKhaiKid]

i can see the PM being asked more and more to use Art 44 to solve all sorts of things, other that is than his own intended plans and without care in no time 44 will not be applied constructively but applied universally and remember the Absolute Control bit.