Govt calls time out on oil, gas bids

Govt calls time out on oil, gas bids

PM says three months needed to amend laws

Prime Minister Prayut Chan-o-cha has decided to delay for three months a new round of bidding for concessions for oil and gas exploration until related laws have been amended. 

Gen Prayut revealed his decision on Tuesday after a meeting of the cabinet and the National Council for Peace and Order (NCPO). 

The prime minister's decision extends the deadline for concession bid application submissions for a second time.

The deadline was originally set for Feb 18, but the Energy Ministry deferred the deadline until March 16 because of the controversy surrounding the bidding.

However, a joint panel of government representatives and civic groups, chosen by the Prime Minister's Office, will continue to compile information from last Friday's public forum and make recommendations.

Gen Prayut said talks will continue to consider other options in detail before legal amendments to the Petroleum Act are proposed to the National Legislative Assembly. Gen Prayut said the cabinet and the NCPO have discussed possible amendments to the act, which might take three months.

Asked how he will assure the private sector that petroleum concession bidding will not be delayed further pending the process to amend the law, Gen Prayut said he was not the one who caused the delay.

"Don't ask me. Ask the opponents how they will take responsibility. The government's task is to find energy supplies," Gen Prayut said.

"When you wanted the matter clarified, we agreed to act on your recommendations and find solutions. Of course, time will be wasted. If there are any mistakes, losses of benefits, they [the opponents] must be held accountable," Gen Prayut said.

Gen Prayut's decision to delay the bidding comes after the government-sponsored forum at Government House last Friday ended in stalemate between supporters and opponents of new oil and gas concessions.

Both sides could only agree that some regulations need to be changed to give the country more options and tools to manage its petroleum resources.

Supporters of the bidding cited energy security as the main reason for proceeding with the new bids immediately. They argued that new oil and natural gas reserves had to be explored without delay because the country would run out of energy in eight years.

But opponents argued the government should not rush and demanded an amendment to the Petroleum Act to allow more options.

Their preference is the production sharing contract scheme, which they claim would keep oil and gas in the country's hands.

Under the concession method, the reserves belong to the explorers, they said.

The People's Network for Energy Reform yesterday issued a statement supporting Gen Prayut's decision.

Parnthep Pourpongpan, the network's core member, said the group was satisfied with the government's decision to postpone the concessions bidding, which should help move talks between the supporters and the opponents forward.

ML Kornkasiwat Kasemsri, the network's representative, said amending relevant laws is the best way to address the problem.

Rosana Tositrakul, a National Reform Council member working on energy reform, said the decision to postpone the bidding shows that the prime minister has agreed to listen to the voice of the people.

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