Post by Soutpeel on May 31, 2016 7:58:52 GMT 7
Bid plan for gas contracts
Energy Ministry to stage auction for key concessions following public pressure.
THE government will attempt to boost transparency in the energy sector by holding an auction for the two major petroleum concessions in the Gulf of Thailand ahead of their expiration dates, instead of granting existing operators the right to extend the concessions without new bidders.
The decision was made during a meeting yesterday of the energy policy committee, Energy Minister Anantaporn Kanjanarat said.
On Sunday, the People's Network for Energy Reform issued a statement urging the government to invite new bids for the lucrative Erawan and Bongkot concessions, which expire in 2022 and 2023.
Both concession contracts account for more than 70 per cent of Thailand's natural gas production in the Gulf.
The non-government organisation also voiced its opposition to an earlier plan to negotiate with Chevron of the US and PTT Exploration and Production, operators of the Erawan and Bongkot fields respectively, to extend the contracts.
Thirachai Phuvanartnalanuban, a former finance minister, said the government had to hold a new round of competitive bidding to ensure the state got the maximum benefit from these concessions.
'4G auction blueprint'
Panthep Puapongpan, a leader of the people's network, said the same policy used in the latest 4G licence auction in the telecom sector should be adopted for the two major petroleum concessions.
Rosana Tositrakul, a former senator, said the government should also review its concession contracts with the private sector to boost the country's share of the benefits in oil and gas production.
She said the concession method used for both the Erawan and Bongkot concessions should be re-considered to include a new option, production-sharing contracts.
Energy Minister Anantaporn said the auction for the fields, in operation for several decades, was expected to be completed within a year, as the relevant operators needed a long lead-in time to prepare for any change before the existing contracts expire.
Output from the two fields is now more than two billion cubic feet per day.
Anantaporn said the planned auction aimed to boost transparency as suggested by non-government groups.
However, existing concessionaires can bid for the contracts and if there were no new bidders the government would have to negotiate with the existing operators.
Most of the gas produced from domestic sources is used in electricity generation. In addition, the country has to import natural gas from Myanmar to meet demand and more will have to be brought from abroad in the next several years due to declining domestic output.
The energy minister said the government had also sought an amendment to the petroleum law to allow production-sharing contracts to be another option for awarding oil and gas contracts to the private sector.
Anantaporn said the amendment was expected to pass through the National Legislative Assembly in the next three to four months.
Chevron earlier announced it would reduce the number of its workers in Thailand in a bid to cut costs amid the global oil and gas price slump.
www.nationmultimedia.com/business/Bid-plan-for-gas-contracts-30287058.html
Energy Ministry to stage auction for key concessions following public pressure.
THE government will attempt to boost transparency in the energy sector by holding an auction for the two major petroleum concessions in the Gulf of Thailand ahead of their expiration dates, instead of granting existing operators the right to extend the concessions without new bidders.
The decision was made during a meeting yesterday of the energy policy committee, Energy Minister Anantaporn Kanjanarat said.
On Sunday, the People's Network for Energy Reform issued a statement urging the government to invite new bids for the lucrative Erawan and Bongkot concessions, which expire in 2022 and 2023.
Both concession contracts account for more than 70 per cent of Thailand's natural gas production in the Gulf.
The non-government organisation also voiced its opposition to an earlier plan to negotiate with Chevron of the US and PTT Exploration and Production, operators of the Erawan and Bongkot fields respectively, to extend the contracts.
Thirachai Phuvanartnalanuban, a former finance minister, said the government had to hold a new round of competitive bidding to ensure the state got the maximum benefit from these concessions.
'4G auction blueprint'
Panthep Puapongpan, a leader of the people's network, said the same policy used in the latest 4G licence auction in the telecom sector should be adopted for the two major petroleum concessions.
Rosana Tositrakul, a former senator, said the government should also review its concession contracts with the private sector to boost the country's share of the benefits in oil and gas production.
She said the concession method used for both the Erawan and Bongkot concessions should be re-considered to include a new option, production-sharing contracts.
Energy Minister Anantaporn said the auction for the fields, in operation for several decades, was expected to be completed within a year, as the relevant operators needed a long lead-in time to prepare for any change before the existing contracts expire.
Output from the two fields is now more than two billion cubic feet per day.
Anantaporn said the planned auction aimed to boost transparency as suggested by non-government groups.
However, existing concessionaires can bid for the contracts and if there were no new bidders the government would have to negotiate with the existing operators.
Most of the gas produced from domestic sources is used in electricity generation. In addition, the country has to import natural gas from Myanmar to meet demand and more will have to be brought from abroad in the next several years due to declining domestic output.
The energy minister said the government had also sought an amendment to the petroleum law to allow production-sharing contracts to be another option for awarding oil and gas contracts to the private sector.
Anantaporn said the amendment was expected to pass through the National Legislative Assembly in the next three to four months.
Chevron earlier announced it would reduce the number of its workers in Thailand in a bid to cut costs amid the global oil and gas price slump.
www.nationmultimedia.com/business/Bid-plan-for-gas-contracts-30287058.html
