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​ 

March 21, 2025
Thailand is continuing on its path toward comprehensive legislation to address climate change. In November 2024, the country’s Ministry of Natural Resources and Environment (MNRE) launched a public hearing on a new draft Climate Change Act following revisions made after an earlier hearing on a previous draft of the act. The revised version strengthens Thailand’s climate policy framework by introducing the Carbon Border Adjustment Mechanism (CBAM), modeled after the EU’s system of the same name. The new draft also restructures the planned Emissions Trading Scheme (ETS) and enhances carbon-tax provisions. These initiatives aim to minimize carbon leakage, promote fair competition for domestic industries, and encourage lower greenhouse gas (GHG) emissions. As of March 2025, the Department of Climate Change and Environment, under the MNRE, is awaiting the Ministry of Finance’s input on the draft act’s establishment of the Climate Fund, a fund to support business innovation in responding to climate change. After incorporating this feedback, the department will submit the refined draft for cabinet approval, expected in 2025. The legislation will then undergo Council of State review, with implementation expected in 2026. Key Provisions The draft Climate Change Act contains a number of provisions that will affect businesses. Some of the most relevant are discussed below. Mandatory ETS The ETS is a mandatory mechanism designed to control GHG emissions by setting emissions caps for designated industries in alignment with national targets. Under this system, businesses receive emissions allowances allocated through free allocation or auctions. This scheme incentivizes emissions reductions by allowing businesses that emit less than their allocated allowances to sell their surplus allowances. The specific business sectors covered by the ETS have not yet been identified in the draft act, as details are expected to be in subordinate legislation. However, it is anticipated that the sectors will align
Read More
March 11, 2025
The Vietnamese government is in the process of amending the Law on Atomic Energy, originally issued in 2008, to harmonize with several newly enacted laws, establish a comprehensive regulatory framework governing nuclear energy in Vietnam, and serve as a legal basis to foster the implementation of ongoing and future nuclear projects in the country. The Ministry of Science and Technology has been assigned to lead the drafting of the amended Law on Atomic Energy. The second draft of the amended law (the “Draft”) was released in late February 2025 for public consultation to gather feedback from the community and stakeholders. Key Points The Draft introduces new regulations to ensure high standards of safe and secure use of nuclear materials, radioactive sources, medical and industrial irradiation, mining and processing of radioactive ores, and radioactive waste management, as well as requirements for enhancing capacity to prepare for and respond to radiation incidents and nuclear incidents. In addition, the Draft emphasizes environmental protection, public health in nuclear energy projects, and support for development and advancing nuclear technology capabilities in Vietnam together with enhancing international cooperation in this field. Below are some key points of the Draft: Approval and licensing requirements for nuclear facilities: The Draft requires investors or owners of nuclear facilities to obtain several permits and approvals as regulated by the government before implementation of construction or operation. Reporting obligations: In addition to periodic reports on operations, safety measures, and compliance with regulations, nuclear facilities are required to make, maintain, and update a number of their regular records related to radiation and nuclear safety for ad hoc reports when required by the competent authorities. In this respect, any incidents or deviations from standard procedures must be reported immediately to the relevant authorities. Training and certification: Personnel working in nuclear facilities as
Read More
February 21, 2025
As Vietnam continues its government restructuring, including the merging of several key ministries, the country is signaling that mergers of provinces could be next. Conclusion 126-KL/TW of the Politburo and Secretariat, issued on February 14, 2025, sets out several tasks for continuing to streamline the political system in 2025, notably including, among others, the following: Elimination of intermediate administrative levels, and mergers of provincial units: The Government Party Committee is tasked with researching and planning for the elimination of intermediate administrative levels (district levels); reorganizing the commune level with structures, functions, duties, powers, and responsibilities aligned with the new organizational model; and proposing the merging of some provincial administrative units. A report to the Politburo is required by Q3 2025. Reorganization of police structure: The Central Public Security Party Committee is tasked with leading and coordinating the implementation of a three-tier police organization, eliminating the district-level police. Judicial system reforms: The Central Party Committees of the Supreme People’s Court and the Supreme People’s Procuracy are tasked with researching and advising on the organizational model for courts and procuracies, and proposing amendments and supplements to relevant party mechanisms and state laws, with the aim of eliminating the district level. A report to the Politburo is required by Q2 2025. Implications of Merging Provinces The merging of provinces could bring positive impacts as well as new challenges. The expected benefits include: Administrative efficiency and cost saving: Reducing the number of administrative units could lead to more efficient governance and decision-making processes, as well as lower administrative costs due to fewer government offices and personnel. Economic development: Larger administrative areas can benefit from better allocation of resources and infrastructure development. Larger provinces may also attract more investment due to increased economic potential and market size. Improved service delivery: Public services could improve
Read More
February 11, 2025
On January 24, 2025, the prime minister of Vietnam issued Decision No. 232/QD-TTg, approving the proposal for establishment and development of a carbon market in Vietnam. The decision establishes a compliance mechanism for greenhouse gas (GHG) emitters and creates opportunities for investors interested in carbon trading in Vietnam. Market Development Roadmap Decision 232 establishes a phased approach to developing Vietnam’s carbon market, with the following ambitious milestones: Before June 2025 (preparation period): The legal framework for trading of emissions quotas and carbon credits and a carbon-credit offset exchange mechanism will be developed, along with the necessary infrastructure for organization and operation of the carbon-credit market. From June 2025 to the end of December 2028 (pilot period): A pilot domestic carbon exchange will be launched, with continued legal refinements. From 2029 (official launch period): The carbon market will be fully operational. Carbon Market Structure and Trading Mechanisms Vietnam’s carbon market will function as a centralized, government-regulated exchange, trading two main assets: GHG emissions quotas (allowances) allocated to regulated emitters, which can be traded or auctioned; and Carbon credits generated from domestic and international projects that are certified for trading. The carbon credits generated from international projects include those originating from international exchange or offset-crediting mechanisms such as the Clean Development Mechanism (CDM), the Joint Credit Mechanism (JCM), and Article 6 of the Paris Agreement. The National Registration System for GHG emissions quotas and carbon credits will be primarily developed and operated by the Ministry of Natural Resources and Environment. Transactions of GHG emissions quotas and carbon credits will occur on the domestic carbon exchange, managed by the Hanoi Stock Exchange, and will follow a centralized process where verified quotas and credits receive unique domestic codes for trading and participants must have depository accounts. The Vietnam Securities Depository and Clearing Corporation
Read More