TCC urges quick resolution of 21st petroleum concession round
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A SEMINAR hosted by the Thai Chamber of Commerce yesterday urged the government and all sectors to finalise the 21st round of bidding for gas and oil exploration quickly, otherwise the delay in locking in energy sources would lead to higher fuel prices as
After the TCC seminar with executives from energy companies and government agencies on the “Impact of Fluctuating Energy Prices on the Private and Public Sectors”, panellists raised concerns that a delay in awarding fuel concessions would cause problems for all energy users.
Sanan Angubolkul, chairman of the chamber’s energy committee, said the TCC was trying to help find a resolution to the deadlocked petroleum-sourcing project.
“All sectors should focus on the future of the country’s energy security, and the rising cost of fuel. The existing sources of oil and gas in Thailand are expected to run out in five to seven years, so the 21st concession round needs to be completed as soon as possible,” he said.
The TCC refused to back any options, saying the issue needs careful study and all sectors need to be heard to ensure maximum benefits for the country.
Under the option chosen was one of three studied by The National Reform Council is studying three options for how the new concessions should be managed.
The other two were for the Energy Ministry to proceed with its current plan to open the 21st round of bidding to allow companies to explore for oil and gas under its Thailand 3 plus regime and for the government to abandon the concession system and replace it with a production-sharing contract.
Sanan said the government should urgently make a decision on this as it would affect companies’ cost management and could hurt Thai businesses’ competitiveness in the future.
The chamber has also supported the government’s plan to adjust energy prices to reflect the real costs. The adjustment would avoid distorting the market mechanism and facilitate long-term planning for companies.
Parts of the private sector have also supported the government’s plan to promote alternative energy and fuel crops.
Twarath Sutabutrs, deputy permanent secretary of the Energy Ministry, said the government had to realise the opening of the 21st round soon.
So far, the government has studied three potential phrases phases in the Gulf of Thailand, which are expected to be completed in four years.
Ath Hemvijitraphan, executive director of the commercial fuel business for Shell Company of Thailand, said the cost of fuel was one of the key variables for each business.
Energy reserves in Thailand are expected to dry up in the near future, so the government and all concerned agencies need to help find a solution to the problem in a short time frame.
