General bidding format for petroleum concession sites approved

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General bidding format for petroleum concession sites approved



BANGKOK: -- The National Energy Policy Council has agreed on the general bidding format for the petroleum concession sites which are due to expire during 2017-2018 to dispel allegation of lack of transparency, said Energy Minister General Anantaporn Kanchanarat on Monday.

Under the general bidding format, he said that the existing concessionaires have the right to enter the new bid and, if there are no other bidders, the government will negotiate with the concessionaires which may take about one year.

There is however one drawback about this format, that is the decreased production capacity of the sites as the current concessionaires may delay new dredging because of the high costs involved and the new concessionaires may not be able to produce immediately.

The Bongkot and Erawan sites produce 2,200 million cubic feet/day.

General Anantaporn said officials of the Natural Gas Department may need to consult with the present concessionaires to maintain their production capacity and this will be specified in the TOR that the new concessionaires may have to be held accountable for the costs.

He warned that, in the next 7-8 years from now, more natural gas will have to be imported for domestic use and all parties concerned, including the consumers, must realise that they will have to pay more because of the additional costs.

Source: http://englishnews.thaipbs.or.th/content/165347


-- Thai PBS 2016-05-31