Speaking at the IADC/SPE Asia Pacific Drilling Technology Conference yesterday, Energy Minister Piyasvasti Amranand promised that the proposed reduction along with other amendments to the Petroleum Act of 1971 would be implemented within a year.

The proposed amendments have already been approved by the National Energy Policy Board and now needs to be passed by the Cabinet and the National Legislative Assembly.

Revising royalty fees is only part of the desired changes. 

The ministry also wants to restructure the petroleum board, which approves petroleum exploration concessions, saying the board should be directed by the director-general of the Energy Policy and Planning Office. Board member's qualifications would also be reviewed to prevent conflict of interest.

The ministry also hopes to gain Cabinet approval for exploration rights to 21 potential fields by the end of this year and to speed up the renewal of concessions to Unocal and the joint exploration project on the Thai-Cambodian border, said Piyasvasti.

Director-general of the Natural Fuels Department, Krairit Ninkhuha, said results of the renewal requests should be known in the first quarter of next year.

He added that petroleum concession royalty fees, which currently stand at 5-15 per cent of output value, could be cut by up to 90 per cent.

Energy Reporters

The Nation