Cabinet orders public clarification of latest petroleum concession bidding plans

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BANGKOK, Oct 28 —  Thailand’s cabinet has ordered the Energy Ministry to explain a possible natural gas shortage crisis to the public in response to opposition to the 21st round of contested bidding for petroleum concessions.

Areepong Bhoocha-Oom, permanent secretary of the Energy Ministry, said Prime Minister Prayut Chan-o-cha ordered the urgent explanation today when the cabinet was briefed on the government’s invitation for bids for concessions on 29 petroleum blocks.

Mr Areepong said that the 21st bidding round had been delayed for seven years while Thailand’s demand for natural gas for electricity generation stood at 1.8 trillion cubic feet per year or about 5 billion cubic feet per day.

Without domestic exploration and production on the 29 blocks, he said, Thailand must import gas, and electricity fees will rise 30 per cent from 4 to 6 baht per unit.

Kurujit Nakornthap, deputy permanent secretary for energy, denied the petroleum exploration and production invitation involved an overlapping area between Thailand and Cambodia.

The blocks were 100 per cent in Thai territory and did not encroach on any forest reserves or national parks, he said.

“If exploration and production are promising in the blocks in the Northeast, they will boost the local economy and create more than 20,000 jobs in related businesses,” Mr Kurujit said.

He added that bidders could form consortiums to vie for the concessions because investment would reach about Bt10 billion.

Interested parties have 6-8 months to place their bids and in the meantime the Energy Ministry is willing to listen to fact-based opinions from concerned parties and the National Reform Council before the government approves the concessions early next year, Mr Kurujit said.