NRC spanner in the works a new headache for Prayut
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WHY DID the National Reform Council (NRC), at its meeting on Tuesday night, vote against its energy-reform committee's backing for the Energy Ministry to proceed with the 21st petroleum-concession bids?
Either the committee wasn’t convincing enough or the concession scheme’s conditions might be really problematic for the country.
Kamnoon Sidhisamarn, a member of NRC’s legal and justice process, posted on Facebook that he was surprised by the vote, though he was happy with the outcome.
The NRC voted 130 to 79 against the government’s policy to continue the concession bidding process, with February 18 as the bid application deadline. According to the Energy Ministry, the process covers concessions for 29 onshore and offshore blocks.
Energy Minister Narongchai Akrasanee, who had been considered one of the luckiest ministers due to the falling global oil prices amidst the country’s energy-sector reform, may now need some aspirin while Prime Minister General Prayut Chan-o-cha is faced with a dilemma on whether to go ahead with the bidding process.
The NRC vote is not binding. It technically does not affect the government’s policy of opening the next round of bidding. The Prayut administration certainly can opt to proceed with its flagship policy.
Last month, Narongchai gave his word to investors at a forum in Bangkok that the process would proceed. If the government heeds the opinion of the NRC, petroleum exploration and production could be delayed by five years.
The Energy Ministry plans to start exploration in 2016 and production to start in 2022.
The country needs to seek more energy reserves for the sake of its future energy security. If no concessions are offered, what will Narongchai say to investors?
Currently, there are about 10 investors – both newcomers and existing concessionaires – who have applied for the bidding phase.
Although the Prayut government may be annoyed with the NRC hurdle and what it may consider a waste of time, it needs to find a soft-landing solution to this problem by again seeking the NRC’s support. Lobbying NRC members to back the proposal will be the hardest part of Narongchai’s challenging tasks.
The thing is, not only could the government lose credibility if it chooses not to listen to the NRC, which was established as a mechanism to endorse crucial policies, but this matter could also disrupt the government’s reconciliation plans.
The government still has many things to reform and fix. Some civic groups might make a move against the government if they do not trust it anymore to proceed with the implementation of policies, especially those linked to the social-gap problem.
