FTI supports new petroleum bidding round

In a statement, it said that such bidding is crucial to Thai industrial development due to three main reasons.

First, energy security affects the manufacturing process and product quality. It is also a major factor drawing new investment into Thailand.

Second, it said that Thailand needs new energy sources. In the past 40 years, Thailand had launched 20 bidding rounds, with the latest taking place six years ago.  Low success rate was also reported in the 20th round, prompting the necessity of the new round. Given that it takes 10 years to commercialise a gas exploration project, further delays may hurt the country's energy security.

Third, it showed supports to the ministry's auctioning method so-called "Thailand 3+", which has been modified for the mutual benefits of investors and the country.

It noted that if the production sharing contract (PSC) is applied, close participation of the government in the management and production process is a must. This requires a state agency equipped with able and honest personnel. 

It also noted that Thailand's concessioning system is marred by poor transparency, information disclosure and state control. 

While highlighting the importance of transaprency and accountability, it also urged the government to study other concessioning options as well as tackling social and environmental impacts associated with the exploration on community.