Govt must take public into confidence on oil concessions

The issue of greatest concern to critics who call themselves the “People’s Network for Energy Reform” in essence involved adding more options to the Petroleum Act on acquiring oil and gas for energy security apart from the concession system.
They prefer the “production sharing contract” (PSC) system so that the state also has ownership of a share of oil and gas production.
The critics tasted victory when the government recently decided to get off its high horse and chose to push for an amendment to the act before starting the new bidding process.
Even though the bids have been delayed for seven years, it would be pointless to proceed when there are still doubts over the rules and regulations on the concession bidding. Transparency and national interests must be safeguarded.
Prime Minister Prayut had maintained an aggressive posture that the government would adhere to the decision by the Energy Ministry regarding opening of the 21st bidding round, with the deadline for bidders’ applications set for February 18.
The next date, scheduled for March 16, was also put off by not more than three months.
Prayut expects a newly established joint committee between the government and opponents to agree which part of the law needs to be amended. Whatever key issues are jointly agreed will be further proposed to the National Legislative Assembly, which is not expected to take much time under the military-backed government for deliberation.
The joint committee was formed after an energy forum at Government House last Friday to gather all information from both supporters and opponents of the new round to facilitate a decision by Prayut by Tuesday.
Surprisingly, Prasong Soonsiri, who was behind a network that ousted former prime minister Thaksin Shinawatra’s government, was named to the joint committee on the non-government side.
Former prime minister Abhisit Vejjajiva, leader of Democrat Party, was also present with opponents of the bid at Friday’s energy forum.
Some of the main points to be amended, apart from adding the PSC system to the Petroleum Act, are supposed to include separation of rights in exploration from production and sale, and establishment of an energy organisation.
In addition, the opponents propose that the government survey the potential of oil and gas areas before opening the bids.
Energy Minister Narongchai Akrasanee has turned out to be a moderate in his energy policy, saying the new bids for petroleum exploration and production concessions may be delayed by four months – three for legal amendments and one to prepare the process for the new method.
This means that the next bidding for rights in exploration and production of the Kingdom’s oil and gas over 26 areas onshore and three offshore is likely to open in July.
 From now onwards, the Prayut government should make clear to the public the pros and cons of the concession and production-sharing methods and say which one is better for the country.