Petroleum exploration bidding to resume
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THAILAND will finally kick off the 21st round of bidding for domestic petroleum exploration and production next month after Prime Minister Prayut Chan-o-cha ordered a three-month delay for the National Legislative Assembly (NLA) to amend the petroleum law
Puangthip Silpasart, director-general of the Mineral Fuels Department, said yesterday that the auction would still be for 29 blocks but the phrase “petroleum concessions” would no long be used.
The three high-potential blocks in the Gulf of Thailand – G3, G5 and G6 – will be governed by a production-sharing scheme, while the remaining onshore and offshore blocks will come under concessions, she said.
The department has sent officials to work with the NLA on drafting the production-sharing law and to present information on why the country needs to speed up its opening of the new petroleum E&P round.
The department says it has engaged a credible consulting firm to appraise the country’s petroleum reserves and show the NLA that proven gas reserves will be depleted in six to seven years.
Consumption of natural gas has grown to 5.2 billion cubic feet per day against domestic supply of only 3bcfd.
The country has to import 1.1bcfd from Myanmar and 0.8bcfd from the Thailand-Malaysia Joint Development Area. It also buys liquefied natural gas equivalent to 0.28bcfd from abroad.
Gas demand to rise
Gas demand is expected to rise to more than 5.2bcfd by 2018, so new local gas sources must be to found to avoid increasing dependence on imported LNG.
A committee chaired by Kurujit Nakornthap, deputy permanent secretary of the Energy Ministry, is considering a suitable way to manage the two petroleum concessions set to expire from 2022-23.
The committee is expected to reach a conclusion this year based on two guiding principles – continued flow of petroleum and maximum benefit for the country.
An Energy Ministry source said the ministry planned to send out bidding invitations next month, since the NLA was expected to finish its amendment in the three-month period declared by the prime minister in March.
If the NLA cannot finish in time, Prayut may have to resort to Article 44 of the provisional constitution to allow the government to proceed with the petroleum tender.
Rosana Tositrakul, an NLA member and key opponent to the petroleum bidding, said the public was not against petroleum E&P activities but thought the procedures should come under transparent laws and regulation.
The department should wait for the NLA to complete its amendment of petroleum laws that will open the way for either production-sharing or contractual schemes, instead of the current laws that allow only concessionary schemes.
A citizens group is also drafting its own law, which will be completed this month, in parallel with the NLA.
“The NLA should wait to see the citizens’ draft [before it makes] its decision,” Rosana said.
