Listed companies oppose concessions
Top executives from listed non-oil companies have jumped on the petroleum concession bid opposition bandwagon by urging the government to review the profitsharing contract system, reports the Stock Exchange of Thailand’s latest CEO survey.
The survey of chief executives from 39 listed companies engaged in 22 sectors took place from Jan 21 to Feb 6.
The 39 surveyed companies’ market cap accounted for 19% of the overall market value as of the end of last month. A total of 31 of the firms were non-oil companies.
Opposition to the 21st round of petroleum and gas exploration bids, covering 29 gas and oil resource blocks with 23 offshore and six onshore, has reached a fever pitch. The National Energy Policy Committee recently agreed to postpone the submission period for bid applications for the concessions to March 16 from yesterday.
The government also decided to organise a public forum to allow all concerned parties to present their views at the Santi Maitree Building in the Government House compound.
Among those signing the open letter — issued under the People’s Alliance for Thai Energy Reform group — to oppose the coming round of bids were former House speaker Arthit Urairat, former prime minister and Democrat Party leader Abhisit Vejjajiva, former finance minister Thirachai Phuvanatnaranubala and former foreign minister Prasong Soonsiri. The alliance urges the government to suspend the planned bidding, saying the concession bids would be too small.
They are calling f or a switch t o production-sharing contracts, which they claim are more flexible and can offer more benefits to the country.
The non-oil company survey respondents called for the government to set fuel prices that reflect real production costs and the global price as well as support alternative energy operators.
They also want the government to launch energy conservation campaigns to raise awareness among consumers and businesses about efficient energy use and map out long-term energy use plans for national energy security.
The heads of oil-related companies want the government to continue pursuing petroleum exploration and level the playing field for petroleum drilling, meaning reducing foreign firms’ monopolies.
The oil-related companies requested justified tax and fuel price structures that reflect real production costs, development of fuel transmission pipelines to cut transport costs and government support of independent organisations so they can work without favour.
Chief executives of both oil-related and non-oil companies expect crude oil prices will average US$65 a barrel this year, higher than the current price.
The crude oil price stood at $48.64 a barrel at the end of last month.
The survey also found oil-related companies had honed their focus to increasing production and labour efficiency rather than cutting jobs or narrowing the price gap following the ongoing oil price decline.