PM defers concession bidding for Act rewrite

The 21st round of bidding for oil and gas concessions needs to be delayed until the Petroleum Act has been amended, Prime Minister Prayut Chan-o-cha said yesterday.
He made the remark after a meeting between the Cabinet and the National Council for Peace and Order on this contentious issue.
The decision was made after strong pressure from civic groups last week on the government to halt the awarding of concessions before the law is amended to enable the state to enjoy more profits. They needed the law to be rewritten to have profit sharing scheme between investors and state agencies in petroleum deals. The current law authorises the government only to grant concessions to investors.
Prayut said the planned government and people’s committee would work out how to amend the law.
However, Energy Minister Narongchai Akrasanee disagreed, saying the Cabinet did not discuss the issue yesterday.
“For the standing point of the Energy Ministry, we are still supporting any progress that can be made in the petroleum concession bidding to ensure energy stability of the country. A conclusion should be made in advance of whether the Petroleum Act will be amended before or after the concession bid.
“We would like to affirm that the Act is not out of date as it has been amended four times so far,” he said.
On February 16, the National Energy Policy Council extended the closing date for the 21st tender of oil and gas exploration and production concessions by four weeks from the original deadline of February 18 until March 16. The government held a public hearing last Friday to clarify the situation with lobby groups that have opposed the bidding.
Opponents of concessions, led by a member of National Reform Council (NRC) Rosana Tositrakul, advised the government to switch to a production-sharing system, which they said would be more flexible and beneficial for the country.
When asked how the government would create confidence for investors while the law is amended, Prayut said he couldn’t say – and suggested they put the question to those opposing the awarding of a new round of concessions.
“Ask them [Rosana’s group], don’t ask me. I’m not the person who initiates the matter or delays the process,” he said. “They told me to be open for people’s opinions, now I have. But why do you ask me about investors’ confidence?”
Prayut expected it would take at least three months or so to amend the law but the length of time would depend on how the Act will be amended and the people involved in the process.
The PM said the timeframe could be postponed if the deadline for drilling exploration bids on March 16 cannot be settled, so the joint committee set up by the government and civic sector on the issue would have to have further talks.
The 12 member panel will meet tomorrow. PM’s Office Minister ML Panadda Diskul will represent the government and be a spokesperson. Kurujit Nakornthap, deputy permanent secretary at the Ministry of Energy, will attend as head of the panel on behalf of the government.
Participants for the people’s sector will include former foreign minister Prasong Soonsiri, Panthep Phuaphongphan, ML Kornkasiwat Kasemsri, and Rosana, the former Bangkok senator now in the NRC.
Deputy government spokesman Maj-General Sansern Kaewkam-nerd said if the Petroleum Act is amended, or any new organisation set up to cater for changes if a production-sharing system is introduced, the process might be delayed.