Rayong oil spill: PTTGC may have to pay only 'small compensation'

[webfact]

PTTGC may have to pay only 'small compensation'
Pongphon Sarnsamak
The Nation

BANGKOK: -- PTT Global Chemical may only have to pay about Bt200 million - a relatively small compensation amount - for all damage caused by the recent oil spill in the Gulf of Thailand off Rayong, an economic expert has said.

This figure is based on an international rate that companies that cause an oil spill must pay - of US$1,200 (about Bt37,500) per litre - as compensation for all damage, according to Adis Israngkura na Ayudhaya, of the National Institute of Development Administration (NIDA).

Adis spoke at a public forum yesterday titled "The Lesson Learned, Analysis of the Oil Spill in the Gulf of Thailand: The Impact on Marine Interests" held by the Thailand Research Fund.

He said the sum the oil firm should pay for damage to natural resources and affected people was based on the international rate. And when he used this rate to calculate the compensation, along with the Kingdom's gross national income per capita - which is one-tenth the international rate - he found PTTGC may pay only Bt200 million ($6.4 million) for damage caused by the leak of 50,000 litres of oil into the gulf.

The scale of damage at Ao Phrao on Koh Samet was not large, if compared with the massive spill of 60 million litres in Alaska's Prince William Sound in 1989, or the Deepwater Horizon spill, which saw more than 750 million litres gush into the Gulf of Mexico in 2010. For the first event, oil giant Exxon had to pay $27 billion in compensation, while British Petroleum (BP) had to pay about $56 billion for the second.

"I am not sure we can ask for compensation for environmental damage, as the Thai legal system will ask for a bill," Adis said.

He said there were four categories of compensation for damage from oil spills - cost of the clean-up, cash for affected businesses, for natural resources, and a punitive fine.

PTTGC vowed earlier to take responsibility and said it would pay compensation to affected people and state agencies for damage to natural resources.

However, people were asked not to file lawsuits as the firm would then have to wait for a court ruling, and this could delay the process for a long time.

-- The Nation 2013-08-10

[livinthailandos]

Im sure due to connections and corruption they won't be paying very much at all in terms of damage and compensation.

Sent from my GT-I9300T using Thaivisa Connect Thailand mobile app

[Thai at Heart]

He said the sum the oil firm should pay for damage to natural resources and affected people was based on the international rate. And when he used this rate to calculate the compensation, along with the Kingdom's gross national income per capita - which is one-tenth the international rate -

So is it based on the international rate or 10% of the international rate?

[Briggsy]

Of course, if you understate the amount of oil that leaked, this will help in reducing this mathematical product.

[NongKhaiKid]

I am shocked as in the spirit of Thai Rak Thai I thought they would have been throwing money around but I suppose the shareholders being rich, influential and well connected including Dolly the Carabao would object.

Yes Thais love each other until it comes to money

[LuckyLew]

That amount is based on 50 000 spillage

IMO the amount spilled was a lot higher

and if they had to pay on what actually spilled

it wold probably be higher

It is not who you know ... it is who you ....

[MikeOboe57]

However, people were asked not to file lawsuits as the firm would then have to wait for a court ruling, and this could delay the process for a long time.

No need to comment on that.

[WhizBang]

PTT Global Chemical may only have to pay about Bt200 million - a relatively small compensation amount - for all damage caused by the recent oil spill in the Gulf of Thailand off Rayong, an economic expert has said.

This figure is based on an international rate that companies that cause an oil spill must pay - of US$1,200 (about Bt37,500) per litre - as compensation for all damage, according to Adis Israngkura na Ayudhaya, of the National Institute of Development Administration (NIDA).

Something not right here. The international rate is $1200 per litre. We are told only 50000 litres escaped (even thought it was probably much more). But doing the math, I get a figure of ($1200x50000 = $60 million == 1800 million baht (@30B/$)).

So how do they get only 200 million baht? The kingdom's gross national income per capita should be irrelevant and not factor into the compensation as the $1200 per litre is the international rate.

Something well and truely stinks here.

[alfalfa19]

The 50,000 litre figure has been widely dismissed as ridiculous. On top of that, who is the money supposed to go to? Probably none of the people directly affected, I would guess.

[ginjag]

If this story is true, if the figures are accurate, and they only pay out the said estimated amount it will be a further nail in the governments coffin.

what a cheap charlie cop out, again they must think everyone has fell off the back of a number nine bus.

[smutcakes]

I wonder what 'rate' this expert is being paid by PTT,

[Halion]

I see no mention as to any fine regarding the deliberate use of a massive excess of chemical dispersants which in itself is yet another form of contaminant. This is no application of International standards, just the influence of the Thai culture,all bullshit ,smoke and mirrors.

[ginjag]

I wonder what 'rate' this expert is being paid by PTT,

The 50,000 litres was chosen from the very first report, because a not so stupid official had known about the international payout, and plucked the figure out of mid air. (( a drop in the ocean)) so to speak.

[slapout]

Thailand never ceases to amaze me. The ACCOUNTING for the rice program, the cost to Thailand of taxes avoided in auto purchase, laundered monies moved out of country via temple accounts, funds diverted from flood, bomb detectors, water diversion, Ag subsidies, free airline tickets (used and unused), multiple international trips for civil servents and their cronies, etc would make a qualified accountant, declare "jesus wept"

Some of the so called experts trouted out to justify the spending, diversion of funds, non payment to damaged entities, etc have to be the most shameful to the Thai business world in decades. This government volunteered massive death benifits to those the deemed deserving and now this motor mouth throws out a calcuation bases on gnp.

Next we will have a skin darkness, vision, or number of twice removed cousins as a base of monetary payment.

[Bluespunk]

Where did PTTGC dig up this guy, does he get a percentage of the amount they don't pay out? He says they should only pay 10% of the international norm? <deleted> did that thinking come from?

Edited August 10, 2013 by Bluespunk

[Bluespunk]

"PTTGC may have to pay only 'small compensation'"

Private notice: shareholders only:

Please be aware, cover up and avoidance of all responsibilities well under way. You can rest assured, we will get away with this.

[noitom]

Where are the Thai fat cats? Don't they give to each other in times of need? Where are the Thai Big Swinging Shots that we read about in Thailand Tattler and Forbes this and Mr. Asia Richest that?

[geriatrickid]

In respect to the natural resources damaged, it would have to be the "state" that would bring suit wouldn't it, since it is the state deemed to be the "owner" of Thailand's natural resources.

Who owns PTT Global Chemical?

Well, here's a hint, the largest owner is PTT, a state owned asset. PTT the public company owns a 49% interest in an outright manner. PTT also has additional interest in the entities that also are stakeholders in PTTGC. For example, HMC Polymers Company Limited owns just under 2%, but PTT in turn owns 41% of the entity. if one goes down the ownership interests and the tailback to the state, the dominant ownership interest is that of the state. What would the point be of the state suing a company, if it was the state that would ultimately suffer?

The situation is further compounded by the ownership interests in PTTGC of some of Thailand's largest financial interests. For example,Thai NVDR Company Limited owns in excess of 7% of PTTGC, The SET owns this company

It becomes more delicate as the Royal Household has an ownership interest. This interest comes by way of indirect investment vehicles For example, Siam Cement's ownership is just under 2% of PTTGC.

Thailand's national pensions also have an investment stake. Any loss to the pension fund investments would directly impact the pension fun benificiaries which are quite literally tens of millions of Thais who benefit from the pension funds.

Quite a quandry.

Edited August 10, 2013 by geriatrickid

[Thai at Heart]

In respect to the natural resources damaged, it would have to be the "state" that would bring suit wouldn't it, since it is the state deemed to be the "owner" of Thailand's natural resources.

Who owns PTT Global Chemical?

Well, here's a hint, the largest owner is PTT, a state owned asset. PTT the public company owns a 49% interest in an outright manner. PTT also has additional interest in the entities that also are stakeholders in PTTGC. For example, HMC Polymers Company Limited owns just under 2%, but PTT in turn owns 41% of the entity. if on goes down the ownership interests and the tailback to the state, the dominant ownership interest is that of the state. What would the point be of the state suing a company, if it was the state that would ultimately suffer?

The situation is further compounded by the ownership interests in PTTGC of some of Thailand's largest financial interests. For example,Thai NVDR Company Limited owns in excess of 7% of PTTGC, The SET owns this company

It becomes more delicate as the Royal Household has an ownership interest. This interest comes by way of indirect investment vehicles For example, Siam Cement's ownership is just under 2% of PTTGC.

Thailand's national pensions also have an investment stake. Any loss to the pension fund investments would directly impact the pension fun benificiaries which are quite literally tens of millions of Thais who benefit from the pension funds.

Quite a quandary.

I.e. it's likely that some Numbskull would decide that the national interest would be served by paying zero compensation.

[paulward75]

It stinks alright, please do not file law suits because it takes a long time to get your money??? Essentially what this says is you can have 10% of what you deserve now if you shut up and go away!

[Ulic]

Now I understand why the amount of the spill was underestimated by about 90%. That plus running the international

compensation rate per litre through a Thai algorithm and the number comes out at a very manageable amount.

All good, nothing to report here, be on you way, next story.

[SOTIRIOS]

......I guess they have NIDA in their pocket.....

[Bluespunk]

In respect to the natural resources damaged, it would have to be the "state" that would bring suit wouldn't it, since it is the state deemed to be the "owner" of Thailand's natural resources.

Who owns PTT Global Chemical?

Well, here's a hint, the largest owner is PTT, a state owned asset. PTT the public company owns a 49% interest in an outright manner. PTT also has additional interest in the entities that also are stakeholders in PTTGC. For example, HMC Polymers Company Limited owns just under 2%, but PTT in turn owns 41% of the entity. if one goes down the ownership interests and the tailback to the state, the dominant ownership interest is that of the state. What would the point be of the state suing a company, if it was the state that would ultimately suffer?

The situation is further compounded by the ownership interests in PTTGC of some of Thailand's largest financial interests. For example,Thai NVDR Company Limited owns in excess of 7% of PTTGC, The SET owns this company

It becomes more delicate as the Royal Household has an ownership interest. This interest comes by way of indirect investment vehicles For example, Siam Cement's ownership is just under 2% of PTTGC.

Thailand's national pensions also have an investment stake. Any loss to the pension fund investments would directly impact the pension fun benificiaries which are quite literally tens of millions of Thais who benefit from the pension funds.

Quite a quandry.

I wish I could say that the thought and effort you put into this post has helped me feel better about how much effort is going to be put into penalising those responsible for this disaster and actually facing up to the consequences of their actions. It doesn't. The information here makes me think that jack all will be done and this will all be swept under the carpet. Still, good post.

[PoodMaiDai]

PTT Global Chemical may only have to pay about Bt200 million - a relatively small compensation amount - for all damage caused by the recent oil spill in the Gulf of Thailand off Rayong, an economic expert has said.

This figure is based on an international rate that companies that cause an oil spill must pay - of US$1,200 (about Bt37,500) per litre - as compensation for all damage, according to Adis Israngkura na Ayudhaya, of the National Institute of Development Administration (NIDA).

Something not right here. The international rate is $1200 per litre. We are told only 50000 litres escaped (even thought it was probably much more). But doing the math, I get a figure of ($1200x50000 = $60 million == 1800 million baht (@30B/$)).

So how do they get only 200 million baht? The kingdom's gross national income per capita should be irrelevant and not factor into the compensation as the $1200 per litre is the international rate.

Something well and truly stinks here.

Thailand - the hub of basic arithmetic

[Lobo4819]

Ask them no questions; they'll tell you no lies.

[zydeco]

Thailand never ceases to amaze me. The ACCOUNTING for the rice program, the cost to Thailand of taxes avoided in auto purchase, laundered monies moved out of country via temple accounts, funds diverted from flood, bomb detectors, water diversion, Ag subsidies, free airline tickets (used and unused), multiple international trips for civil servents and their cronies, etc would make a qualified accountant, declare "jesus wept"

Some of the so called experts trouted out to justify the spending, diversion of funds, non payment to damaged entities, etc have to be the most shameful to the Thai business world in decades. This government volunteered massive death benifits to those the deemed deserving and now this motor mouth throws out a calcuation bases on gnp.

Next we will have a skin darkness, vision, or number of twice removed cousins as a base of monetary payment.

Welcome to the Haiti of Southeast Asia.

[Bakseeda]

If this story is true, if the figures are accurate, and they only pay out the said estimated amount it will be a further nail in the governments coffin.

what a cheap charlie cop out, again they must think everyone has fell off the back of a number nine bus.

The other day a man tried to sell me a picture frame ... cheap he said... seems it fell of the back of a Lourie.....

[scotinsiam]

PTT Global Chemical may only have to pay about Bt200 million - a relatively small compensation amount - for all damage caused by the recent oil spill in the Gulf of Thailand off Rayong, an economic expert has said.

This figure is based on an international rate that companies that cause an oil spill must pay - of US$1,200 (about Bt37,500) per litre - as compensation for all damage, according to Adis Israngkura na Ayudhaya, of the National Institute of Development Administration (NIDA).

Something not right here. The international rate is $1200 per litre. We are told only 50000 litres escaped (even thought it was probably much more). But doing the math, I get a figure of ($1200x50000 = $60 million == 1800 million baht (@30B/$)).

So how do they get only 200 million baht? The kingdom's gross national income per capita should be irrelevant and not factor into the compensation as the $1200 per litre is the international rate.

Something well and truely stinks here.

yes the beach stinks

[scotinsiam]

PTTGC may have to pay only 'small compensation'
Pongphon Sarnsamak
The Nation

BANGKOK: -- PTT Global Chemical may only have to pay about Bt200 million - a relatively small compensation amount - for all damage caused by the recent oil spill in the Gulf of Thailand off Rayong, an economic expert has said.

This figure is based on an international rate that companies that cause an oil spill must pay - of US$1,200 (about Bt37,500) per litre - as compensation for all damage, according to Adis Israngkura na Ayudhaya, of the National Institute of Development Administration (NIDA).

Adis spoke at a public forum yesterday titled "The Lesson Learned, Analysis of the Oil Spill in the Gulf of Thailand: The Impact on Marine Interests" held by the Thailand Research Fund. (surely to early to be looking at lessons learnt)

He said the sum the oil firm should pay for damage to natural resources and affected people was based on the international rate. (impossible to know at this point) And when he used this rate to calculate the compensation, along with the Kingdom's gross national income per capita (irrelevant) - which is one-tenth the international rate - he found PTTGC may pay only Bt200 million ($6.4 million) for damage caused by the leak of 50,000 litres of oil into the gulf. 37500 baht x 50,000 lts (Lies) = 1875000000 Baht????

The scale of damage at Ao Phrao on Koh Samet was not large, (impossible to judge at this point) if compared with the massive spill of 60 million litres in Alaska's Prince William Sound in 1989, or the Deepwater Horizon spill, which saw more than 750 million litres gush into the Gulf of Mexico in 2010. For the first event, oil giant Exxon had to pay $27 billion in compensation, while British Petroleum (BP) had to pay about $56 billion for the second. (each case totally irrelevant to this)

"I am not sure we can ask for compensation for environmental damage, as the Thai legal system will ask for a bill," Adis said. (what???)

He said there were four categories of compensation for damage from oil spills - cost of the clean-up, cash for affected businesses, for natural resources, and a punitive fine.

PTTGC vowed earlier to take responsibility and said it would pay compensation to affected people and state agencies for damage to natural resources.

However, people were asked not to file lawsuits as the firm would then have to wait for a court ruling, and this could delay the process for a long time.

-- The Nation 2013-08-10

[kimamey]

In respect to the natural resources damaged, it would have to be the "state" that would bring suit wouldn't it, since it is the state deemed to be the "owner" of Thailand's natural resources.

Who owns PTT Global Chemical?

Well, here's a hint, the largest owner is PTT, a state owned asset. PTT the public company owns a 49% interest in an outright manner. PTT also has additional interest in the entities that also are stakeholders in PTTGC. For example, HMC Polymers Company Limited owns just under 2%, but PTT in turn owns 41% of the entity. if one goes down the ownership interests and the tailback to the state, the dominant ownership interest is that of the state. What would the point be of the state suing a company, if it was the state that would ultimately suffer?

The situation is further compounded by the ownership interests in PTTGC of some of Thailand's largest financial interests. For example,Thai NVDR Company Limited owns in excess of 7% of PTTGC, The SET owns this company

It becomes more delicate as the Royal Household has an ownership interest. This interest comes by way of indirect investment vehicles For example, Siam Cement's ownership is just under 2% of PTTGC.

Thailand's national pensions also have an investment stake. Any loss to the pension fund investments would directly impact the pension fun benificiaries which are quite literally tens of millions of Thais who benefit from the pension funds.

Quite a quandry.

I wish I could say that the thought and effort you put into this post has helped me feel better about how much effort is going to be put into penalising those responsible for this disaster and actually facing up to the consequences of their actions. It doesn't. The information here makes me think that jack all will be done and this will all be swept under the carpet. Still, good post.

Completely agree on that. Good post.