BANGKOK, 10 March 2012 – Oil drilling at Taweewattana District has now begun following the confirmation of environmental safety by the Mineral Fuels Department.
According to the concessionaire, Mitra Energy Limited, the company needs to drill a hole of 16 inches in width and 2.5 kilometers in depth to see whether the area contains fuel as speculated. The process may take about 20 days.
Mitra Energy Limited will have to give the land back to the Mineral Fuels Department if no petroleum is found. The concessionaire has admitted that the chance of energy discovery may be less than 10 percent. However, if oil is found, the company will still need to complete a series of procedure before it is allowed to commercialize the energy.
The company will also have to discuss the issue with the Bangkok Metropolitan Administration (BMA) which is in charge of Taweewattana District. It has ruled out the possibility of building an oil refinery in the area, citing legal conditions. However, it might transfer the petroleum to existing refineries elsewhere. Environmental Impact Assessment must be conducted in this case.
Meanwhile, the Mineral Fuels Department Director-General Songpob Polchan has confirmed that the oil drilling has posed no environmental impact so far, adding that the locals have already been briefed on the project.
