You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

August 19, 2020

PTIT Focus: Providing Reports and Plans in Accordance with Environmental Management Procedures for the Decommissioning of Installations Used in the Petroleum Industry

Subscribe to Updates
Petroleum Institute of Thailand: PTIT Focus

Providing Reports and Plans in Accordance with Environmental Management Procedures for the Decommissioning of Installations Used in the Petroleum Industry

Clause 4 of the Ministerial Regulations Prescribing the Plan, Estimated Cost and Security for Decommissioning Installations Used in the Petroleum Industry B.E. 2559 (2016), which is issued under Section 14 (5), Section 80/1, and Section 80/2 of the Petroleum Act B.E. 2514 (1971), as amended by the Petroleum Act B.E.2514 (1971) (No.6) B.E.2550 (2007), provides that a concessionaire has the responsibility to proceed with environmental management procedures for the decommissioning of installations used in the petroleum industry, in order to effectively promote and preserve the quality of the environment. In addition, the procedures also cover research on environmental impact. The principles, procedures, and conditions of such reports and plans must be pursuant to the announcement of the Department of Mineral Fuels (DMF).

On 26 June 2018, the DMF issued the Announcement Prescribing the Principles, Procedures and Conditions for Providing the Reports and Plans in Regard to the Environmental Management Procedures for the Decommissioning of Installations Used. This announcement aims to ensure that the quality of the environment is effectively nurtured and preserved in the event that the installations or the area used for petroleum operations is decommissioned; it also covers research on environmental impact. The announcement prescribes that the concessionaire has the responsibility to provide a report and plan in accordance with a set of four environmental management procedures to the director-general of the DMF for approval, as follows:

  1. Decommissioning Environmental Assessment Report (DEA report): The DEA report must include (1) the installations that will be decommissioned; (2) procedures; (3) duration; (4) environmental information; (5) impact; and (6) the protection policy and monitoring plan. The DEA report must be prepared by a person who is licensed by the Office of Natural Resources and Environmental Policy and Planning to provide environmental impact assessment reports. Prior to providing the DEA report, the concessionaire will have to provide a report defining the scope of the research and the stakeholder plan for the approval of the director-general of the DMF.
  2. Best Practical Environmental Option Report (BPEO report): The concessionaire must consider the best and most suitable option for proceeding with the decommissioning, from all the options prescribed in the DEA report that was approved by the director-general of the DMF. The BPEO report must include important details such as the options and methods for decommissioning, procedures and criteria, and a summary of the most suitable option for proceeding with the decommissioning.
  3. Decommissioning Activity Environmental Management Plan (DEM plan): The DEM plan is related to the permanent closure and abandonment of the well, or the decommissioning, withdrawal, transportation, or demolition of the unused installation. The concessionaire has to lay out, among other things, (1) measures for protection and mitigation of environmental impact, (2) a cleaning plan, (3) removal of any contamination, and (4) a waste management plan. During the decommissioning process, the concessionaire must deliver an audit report on the operations in accordance with the aforementioned plans to the General Director of the DMF within 180 days of finishing the decommissioning activities.
  4. Post-Decommissioning Activity Monitoring Plan: When the decommissioning activities have been completed and the concessionaire has received general environmental information relating to Post-Decommissioning Activity Monitoring, the concessionaire must submit the Progress of Post-Decommissioning Activity Monitoring Report of environmental quality to the director-general of the DMF within the specified time limit. Moreover, the concessionaire also has to deliver the Post-Decommissioning Activity Monitoring Report for the DMF’s approval within the time limit specified in the above plan.

In conclusion, the government agencies not only stipulate the principles for decommissioning and security, but they also stipulate the responsibilities for the concessionaire in respect to providing the research and environmental impact assessment reports, which cover the pre-decommissioning assessment of environmental impact and the management plan during the decommissioning, as well as follow-up, auditing, and post-decommissioning assessment. These helpful measures protecting against environmental impacts help to ensure that decommissioning activities are carried out in a manner that promotes efficient and sustainable environmental protection in the future.

 

This article first appeared in the July 2019 edition of PTIT Focus, the Petroleum Institute of Thailand’s monthly newsletter. The article was published in both English and Thai. 

Related Professionals

Industries

Energy

Location

RELATED INSIGHTS​ 

July 18, 2025
Vietnam’s electric vehicle (EV) industry is experiencing rapid growth, driven by a strong wave of new legislation, strategic plans, and government incentives. The government’s clear commitment to electrification is attracting foreign investment, supporting advanced production, and reducing reliance on internal combustion engine (ICE) imports. Recent national strategies, sector regulations, and technical standards demonstrate a rare level of regulatory momentum in Southeast Asia, positioning Vietnam as a competitive player in the global EV supply chain and an attractive market for foreign investors. An overview of legal developments for the EV sector in Vietnam is presented below. National Action Program for Green Transportation A key driver of Vietnam’s EV growth has been the National Action Program for Green Transportation through 2050 stipulated in Decision No. 876/QD-TTg of the prime minister dated July 22, 2022. The National Action Program sets a detailed roadmap for the green energy transition in road transport. For the period 2022–2030, the focus is on promoting the manufacturing, assembly, import, and conversion of road motor vehicles to electric power, expanding the use of 100% E5 gasoline for road vehicles, developing charging infrastructure to meet the needs of residents and businesses, and encouraging both new and existing bus stations and rest stops to meet green criteria. For the period 2031–2050, the roadmap aims to gradually restrict and ultimately cease by 2040 the manufacturing, assembly, and import of fossil fuel-powered cars, motorcycles, and mopeds for domestic use. By 2050, the goal is for 100% of road motor vehicles and construction vehicles participating in traffic to use electricity or green energy, for all bus stations and rest stops to meet green criteria, and for all machinery and equipment for loading and unloading to transition from fossil fuels to electricity or green energy. The program also calls for the completion of nationwide
Read More
July 16, 2025
On June 27, 2025, the National Assembly of Vietnam officially passed the amended Law on Atomic Energy, which will take effect on January 1, 2026. This legislative milestone follows the release of the fourth draft in June 2025, which was circulated for public consultation and builds upon earlier drafts from February, April, and early June. (See our previous article on the draft version here), Many provisions have been retained or refined to ensure greater specificity and alignment with Vietnam’s current legal framework. Once in force, the amended law will replace the 2008 Law on Atomic Energy (No. 18/2008/QH12), marking a significant step forward in modernizing Vietnam’s legal infrastructure for nuclear energy. The new law aims to harmonize with international standards, promote the safe and sustainable development of nuclear power, and facilitate future nuclear projects in the country. Noteworthy Updates in the Final Legislation Definition of National Radiation and Nuclear Safety Authority (NRNSA): The law introduces a clear definition of the NRNSA, outlining its roles and responsibilities in line with IAEA standards. Currently, this function is performed by the Vietnam Agency for Radiation and Nuclear Safety (VARANS) under the Ministry of Science and Technology. Digital Transformation Requirements: New provisions mandate the development of an integrated digital platform for data management, administrative procedures, and safety oversight, enhancing transparency and security. Policy Support for Training and Privatization: The law sets out principles for workforce incentives and sector privatization, with detailed regulations to be issued by the government. Dedicated Safety and Security Mechanism: A new section outlines inspection, supervision, violation handling, and enforcement procedures in the field of atomic energy, particularly for nuclear power plants. The NRNSA is empowered to conduct unscheduled inspections, suspend operations, and recommend license revocation when safety risks are identified. Key Provisions Retained or Clarified from the Draft Licensing
Read More
July 2, 2025
The second in a three-part series on the recent European blackout and its implications for Thailand, this article assesses the likelihood of a similar event occurring in Thailand, considering the country’s current energy infrastructure and its increasing reliance on renewables.
Read More