Thai government proceeds with new-round petroleum concessions

BANGKOK, October 28 (TNA) - The Thai Cabinet has decided to proceed with the new round of bidding contests for petroleum concessions and ordered public relations (PR) campaigns to create people's proper understanding and awareness on the 21st round of national petroleum concessions. Permanent Secretary for Energy Areepong Bhoocha-oom told journalists on Tuesday that Prime Minister General Prayut Chan-ocha ordered the urgent explanation to the public, after the Cabinet, at its weekly meeting in Bangkok earlier in the day, was briefed on a need for the government's invitation for bids for the 21st-round concessions of new 29 petroleum blocks in the Gulf of Thailand. Areepong said the Cabinet also ordered the Ministry of Energy to explain a possible natural gas shortage crisis to the public, in response to some opposition to the 21st round of bidding contests for petroleum concessions. Areepong stated that the 21st-round bidding contests have been delayed for seven years, while Thailand’s demand for natural gas for electricity generating now stands at 1.8 trillion cubic feet yearly, or about 5 billion cubic feet a day. Areepong acknowledged without the new domestic exploration and production on the 29 blocks, Thailand will have to import natural gas and the country's electricity fee will have to be increased by 30 per cent, or from 4 to 6 baht per unit. Deputy Permanent Secretary for Energy Kurujit Nakornthap, meanwhile, denied that the new-round petroleum exploration and production involves an overlapping area in the Gulf of Thailand between Thailand and Cambodia, stressing that the blocks are 100 per cent in the Thai marine territory and does not encroach on any forest reserves or national park. Kurujit pointed out if the new petroleum exploration and production are promising in the blocks, they will help boost the local economy and create more than 20,000 jobs in related businesses in the area. According to the senior official, as the investment reaches about 10 billion baht, bidders may form their consortiums to vie for the concessions and interested parties have 6-8 months to place their bids. The senior official noted that the Energy Ministry is willing to listen to fact-based opinions from concerned parties and the National Reform Council (NRC) before the Thai government approves the concessions early next year. (TNA)