NLA’s committee on energy to propose way to identify legal limitations in petroleum business

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BANGKOK, 29 January 2015 – A committee under the National Legislative Assembly is preparing to propose the setting up of special team to study the problems related to all laws on petroleum business.

According to Chairman of the NLA’s energy committee Gen. Sakon Satjanit, the government has explained to the legislature that the 21st auction of petroleum concession needs to be opened in order to prepare the country for an expected decline in energy production in the next 5-6 years which can affect Thailand’s energy security.

Gen. Sakon pointed out that, with various legal limitations, such a situation can also have a broader impact on the confidence in the operations of related state-run businesses, the government budget disbursement and many other things.

Therefore, the NLA’s energy committee is asking the government to launch a study to identify other alternatives to manage the country’s petroleum business and supply, other than the concession system, such as output sharing, he added.

In doing so, Gen. Sakon said that a special committee should also be set up to conduct the study of the Petroleum Act, B.E. 2514 and the Petroleum Income Tax, B.E. 2514 along with representatives from the government, the private sector and the public to find the best and fairest solution for everyone.