Petroleum concessions draw flak

Petroleum concessions draw flak

A new round of petroleum exploration concessions has been challenged by civic groups who threatened to file lawsuits and stage protests.

Srisuwan Chanya, chairman of the Stop Global Warming Association, together with another natural resource conservation network, said they would file lawsuits with the Central Administrative Court against the National Energy Policy Council, the energy minister and the Mineral Fuels Department on Monday.

They sought an injunction against the National Energy Policy Committee (NEPC)'s resolution for the 21st round of petroleum concessions, saying the move was not in line with the interim charter's provisions.

The Thai Energy Reform Watch, led by Rosana Tositrakul, a National Reform Council member on energy, also said on Thursday her group was against the NEPC's decisions to open the new round of concessions and to float the LPG price.

"A rush to grant new concessions while the issue is being hotly debated is not appropriate," said Ms Rosana.

"It will open the door to foreign funds to monopolise Thai energy and allow existing groups to extend their contracts.

"The government must reconsider the decision or face protests by the people," the former elected senator for Bangkok said.

"The government should wait for the NRC's decisions on the issue. After all, the council has only one year to do its job," she said.

"Why the rush?" Ms Rosana asked.

The committee announced on Wednesday the Mineral Fuels Department would grant concessions for 29 exploration fields of which six were offshore.

The concessionaires will pay a 5-15% royalty on petroleum sales, 50% corporate income tax and special bonus after they break even or when world crude prices reach a certain level.

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