Newly appointed Energy Minister Narongchai Akrasanee has turned his attention to development of the prolonged offshore overlapping claims area (OCA) in conjunction with the first task of the new foreign minister.
Mr Narongchai performs a ritual on his first day as energy minister. His focus on the OCA in the Gulf of Thailand is part of government plans to accelerate exploration of new oil and gas resources.
Mr Narongchai said on his first day in his new position yesterday that the move was part of government plans to accelerate exploration of new oil and gas resources that had so far found proven reserves that could accommodate domestic demand for only seven years.
The Cambodians also claim the oil and gas resources as their economy continues to grow.
“The area is crucial to both countries, so dealing with this issue should be among our top priorities,” said Mr Narongchai.
The OCA has been claimed by the two countries since 1972, and there had been no progress or collaboration due to the political unrest in Cambodia until 1997, when the two countries signed a memorandum of understanding to start mapping the area. It was halted again by the 1997 Asian financial crisis.
Worse still, relations between the two countries have soured due to a conflict over the 4.6-kilometre vicinity of the Preah Vihear Temple complex.
A senior Energy Ministry official said the Foreign Ministry had
been working hard to resolve disputes
concerning the OCA. Once the issue is settled, the Energy Ministry will be able to proceed with collaboration on the petroleum fields.
Energy experts believe there should be plenty of gas, as it is located near existing production gas blocks of Chevron and PTT Exploration and Production Plc.
Mr Narongchai said he was unsure whether the OCA plan would be implemented during his tenure, as the issue was complex and time-consuming.
Acceleration of the 21st bidding round for oil and gas exploration in Thailand should be done during the military regime’s time, he said.
The 21st round of E&P bidding for 29 blocks has been delayed since 2007 due mainly to political conflict and environmental concerns.
“Petroleum reserves for domestic consumption will last only seven years. With no new resources discovered since 2007, this is an insecure situation for the energy sector,” said Mr Narongchai.
The “BP Statistical Review of World Energy”, issued in June, said Thailand had proven reserves of oil totalling 4 billion barrels and 8.4 trillion cubic feet of gas.
Demand for gas in Thailand is expected to jump to 6 billion cubic feet per day in 2023 from 4.4 billion cfpd now.
Mr Narongchai said his ministry planned to float energy prices and set fair tax rates to pave the way for energy reform.
Fuel price subsidies for liquefied petroleum gas and compressed natural gas will be ended.
“If the prices of these products are floated, consumers will learn to use energy more efficiently, as they’ll have to pay the real prices,” said Mr Narongchai.