National Oil Company would be a risky move : Pridiyathorn

[webfact]

National Oil Company would be a risky move : Pridiyathorn
By THE NATION

 

File photo : Pridiyathorn

 

BANGKOK: -- THE ESTABLISHMENT of a National Oil Company would set back the country’s energy sector for decades, MR Pridiyathorn Devakula, a former deputy premier of the Prayut government, has warned in an open letter to the National Legislative Assembly yesterday.

 

The proposed NOC would be supervised by the Department of Defence Energy under jurisdiction of the Defence Ministry in the initial stage, according to an amendment to the Petroleum Act due to be voted on in the NLA this Thursday.

 

Pridiyathorn said the NOC proposal was included in an amendment to the Act in the second reading, even though there was no such provision in the first reading, which had been approved by the Cabinet for NLA consideration.

 

As a result, there are irregularities in the NOC plan, which would take over existing responsibilities in the management and bidding process for lucrative petroleum concessions.

 

At this stage, there is no feasibility study on the pros and cons of setting up a NOC, so it was inappropriate and premature to push for it being set up, Pridiyathorn said.

 

According to sources, the setting up of a NOC is being pushed by the NLA committee on energy affairs, whose members include former senior |military officers close to the prime |minister.

 

Pridiyathorn said proponents of the NOC should propose a separate bill to set up such an important agency, instead of including it in an amendment to the Petroleum Act.

 

Powers could be abused

 

The Act aims to overhaul the energy sector via various methods to increase public benefits from oil and gas concessions granted by the government. New systems such as Production Sharing Contracts (PSC) will be used along with existing methods.

 

He said the Thai energy sector had been efficiently managed for several decades by a transparent structure, resulting in sufficient energy sources for national development.

 

But he said the powers of a new agency responsible for managing oil and gas concessions could be abused.

 

Pridiyathorn said an Defence Energy Department of the Defence Ministry was in charge of Thai energy affairs about five decades ago and the result was unsatisfactory. 

 

That was before the Petroleum Authority of Thailand (PTT) was set up as a state enterprise to take over the Defence Ministry role.

 

The PTT was later listed on the stock market with the government remaining its majority shareholder with more than 51 per cent of shares.

 

Source: http://www.nationmultimedia.com/news/national/30310482

 

-- © Copyright The Nation 2017-03-28

[scorecard]

This is the guy who was the minister in charge of economic matters and just watched the economy collapse and had no idea what to do to fix it.

 

 

[ExpatOilWorker]

Why would Thailand need a National Oil Company? There are only a few (less than 10) years of oil and gas left in the Golf of Thailand.

[Srikcir]

34 minutes ago, ExpatOilWorker said:

Why would Thailand need a National Oil Company? There are only a few (less than 10) years of oil and gas left in the Golf of Thailand.

Not to mention that Thailand is a net importer of crude oil.

Furthermore, if state-owned PTT has allegedly failed to be effective, how does replacing it with a state-owned National Oil company change the economics?

But maybe it's more about replacing (with regard to management of Thai oil & gas resources) PTT that is only 51% state-owned with a national oil company that is 100% state-owned. WIth 49% of PTT publicly traded, the Thai SEC requires certain transparency and accounting disclosures. With a change to a 100% state-owned company all transparency and accounting disclosures would be decided by the state. That allows the opportunity for massive corruption, particularly if the junta appoints itself and/or its loyalists to a permanent Board of Directors!

[EricBerg]

Many will be drooling at the thought of a national oil company: heaps of "brown envelopes" to collect...

[Foghorn Leghorn]

3 hours ago, scorecard said:

This is the guy who was the minister in charge of economic matters and just watched the economy collapse and had no idea what to do to fix it.

 

 

You are probably right but the present lot of over-promoted foot soldiers would hardly be any better in the field of economics. This plan for a State owned oil company can be readily be seen for what it is and that is a means to line the pockets of those in power along with their "connected" cronies.

[elgordo38]

 

National Oil Company would be a risky move : Pridiyathorn Hey go for it its the year of the risk. Add submarines, military equipment with no wars on the horizon and bullet trains to no where. Cut off free school lunches for the poor and its in the bank. 

[elgordo38]

8 hours ago, webfact said:

According to sources, the setting up of a NOC is being pushed by the NLA committee on energy affairs, whose members include former senior |military officers close to the prime |minister.

Former military officers close to the Prime Minister done deal. Move on.