Thailand Announces Myanmar Oil Find

[Jai Dee]

Thailand announces Myanmar oil find

PTT Exploration & Production, Thailand's state-controlled oil and gas exploration company, has discovered a "significant amount" of natural gas and oil reserves in Myanmar, the prime minister of Thailand, Thaksin Shinawatra, announced.

The discovery will secure a sufficient supply of natural gas and oil for Thailand, Thaksin said Saturday during a weekly radio address. On Wednesday, he met with General Than Shwe, head of the military junta ruling Myanmar in the country's new capital, Pyinmana.

Sixty-six percent of PTT Exploration, based in Bangkok, is owned by the state-controlled PTT. The company plans to spend 233 billion baht, or $6.16 billion, before 2010 to increase production of crude oil and natural gas at home and overseas. The company has contracts to explore and develop oil and natural gas fields in countries like Vietnam, Myanmar, Indonesia and Algeria.

"Myanmar will continue to be Thailand's biggest source of energy," Thaksin said. Thailand and Myanmar also plan to jointly build hydropower plants and dams, he said.

PTT Exploration, one of Thailand's biggest producers of natural gas, owns the sole right to explore for oil and natural gas in three projects in the Gulf of Martaban off Myanmar. The company is a minority shareholder in the Yadana and Yetagun gas fields in the Gulf of Martaban. Ratchaburi Electricity Generating Holding, the biggest private power producer in Thailand, buys all the natural gas it uses to generate power from Myanmar's Yadana and Yetagun fields.

Myanmar has been under international sanctions since the military junta rejected the results of elections in 1990, which were won by the opposition National League for Democracy.

The United States sought a UN Security Council resolution criticizing Myanmar after the junta in May extended the house detention of the NLD leader, Aung San Suu Kyi, for a year

Source: International Herald Tribune - 8 August 2006

[fruittbatt]

The timing of this "discovery" could hardly be more fortituitous: Thai elections only two months off, Taksin's popularity and credibility taking a nose-dive, the il/legality of his Singapore fire sale under scrutiny. No wonder his motorcade was involved in an accident in Taksin's rush to the airport to seal the deal with the Junta. Meantime, I wonder how the poor people in Mandalay and Yangon are doing with all those nightly brown-outs and power cuts?

[fruittbatt]

for the pedants among us, that should have been "fortuitous"...typo.

Two other thoughts:

where do sanctions kick in with these types of deals?....evidently they don't...can anyone shed some light?

the proposed dams and hydro-plants will surely have devastating environmental and social effects, as they have in India and elsewhere. Can anyone provide informed comment on these issues?

[Scott]

I have a feeling that where gas and oil are concerned, things like Aung San Suu Kyi and democracy are out the window.

[sriracha john]

Economically, Thaksin and "his" Thailand are practically the only country on this planet that have anything to do with Burma and it's military junta. Burma is isolated, impoverished, and oppressed because of its policies.

If the Thai-Burma association persists and is even expanded as this news seems to indicate.... well if there were a quicker way for this Nations' name and reputation to go down the tubes faster, I can't think of one. Perhaps if they went into nuclear weapon production along with North Korea, it might... but it'd be a close call.

I can see the other nations of the world working towards getting Thailand to back off of this as its completely counter-productive to their economic boycott of Burma. The money Thailand provides in these oil/gas deals will finance the military hardware necessary to maintain the oppressive nature of the junta.

Thaksin's "method" of securing the Nobel Prize Winner's release and ending the military rule of Burma by engaging them economically is not likely to wash in the eyes of the rest of the world. They will likely view Thaksin and by association, Thailand, guilty of self-interest beyond an acceptable level and attempt to push Thailand to "get on board" with the rest of the planet.

[fruittbatt]

Sri Racha John - I hope you are right but I'm not holding my breath that other countries will pressure Thailand on this one. After all, Thailand has been logging teak inside Burma for years, regardless of sanctions. The whole thing is -as you point out- an unforgiveable piece of political opportunism. But, hey, we're Talkin' Toxin here, so I guess there's no surprise that he is destroying (among other considerations) Burma's chances for democracy.

[stumonster]

I think China and India have had more serious negotiations with Myanmar concerning supplies of gas/oil than mr't' ever will - he has the attention span of your average goldfish.

[fruittbatt]

I think China and India have had more serious negotiations with Myanmar concerning supplies of gas/oil than mr't' ever will - he has the attention span of your average goldfish.

politically-speaking - yes, financially more like a shark on speed

[kmart]

Same as it ever was. The military of Thailand and Burma seem to have a long-lasting understanding together. Border skirmish in the morning, then golf in the afternoon. Good for asking for bigger budgets / more weapons / submarines / aircraft carriers, etc.

Toxin will do anything for PTT's interests. Seeing how he managed to get most of the shares at the privatisation; they represent his interests too.

[fruittbatt]

Same as it ever was. The military of Thailand and Burma seem to have a long-lasting understanding together. Border skirmish in the morning, then golf in the afternoon. Good for asking for bigger budgets / more weapons / submarines / aircraft carriers, etc.

Toxin will do anything for PTT's interests. Seeing how he managed to get most of the shares at the privatisation; they represent his interests too.

thankyou: now that dash to the airport makes MUCH better sense to me.

[baboon]

Significant quantities, eh? Always knew the Myanmar Government were a great bunch of lads, so badly misunderstood.Treat them as part of the club and they will behave as such. Dealing with criminal/terrorist organisations such as lead by Ang San Suu Kyi cant be easy, can it?

[ratcatcher]

"Listen Thaksin, we have sanctions against the evil Burmese junta, but you're good pals with old Than Schwe and the boys and with all that oil and gas looking for a home, how about getting us a piece of the action, you know, me, Dick, Donny and the boys at Haliburton?

Of course if you don't ,well we may have to put on a bit more pressure huh? So be a good lad, hurry back to Thailand,get the chicken$hit stuff sorted out and then do a flip over to Burma."

Edited August 8, 2006 by ratcatcher

[Johpa]

I have a feeling that where gas and oil are concerned, things like Aung San Suu Kyi and democracy are out the window.

That has certainly been the experience in the Middle East and more recently in Central Asia where the newly independent "Stans" have been taken over my a rather colorful lot of brutal despots. My favorite is Turkmanbashi Niyazov, "President" of Turkmenistan. The man knows how to preside.

[Ricardo]

Thailand announces Myanmar oil find

PTT Exploration & Production, Thailand's state-controlled oil and gas exploration company, has discovered a "significant amount" of natural gas and oil reserves in Myanmar, the prime minister of Thailand, Thaksin Shinawatra, announced.

Well that explains why DL had to hot-foot it to Burma last week.

The discovery will secure a sufficient supply of natural gas and oil for Thailand, Thaksin said Saturday during a weekly radio address. On Wednesday, he met with General Than Shwe, head of the military junta ruling Myanmar in the country's new capital, Pyinmana.

Odd, I hadn't realised that Thailand was having any trouble sourcing oil from its regular suppliers ?

Sixty-six percent of PTT Exploration, based in Bangkok, is owned by the state-controlled PTT. The company plans to spend 233 billion baht, or $6.16 billion, before 2010 to increase production of crude oil and natural gas at home and overseas. The company has contracts to explore and develop oil and natural gas fields in countries like Vietnam, Myanmar, Indonesia and Algeria.

Good to know that domestic sources-of-capital exist, for the PTT and projects like this, it must be only the more-risky mega-projects, that can't proceed without foreign risk-capital ?

"Myanmar will continue to be Thailand's biggest source of energy," Thaksin said. Thailand and Myanmar also plan to jointly build hydropower plants and dams, he said.

PTT Exploration, one of Thailand's biggest producers of natural gas, owns the sole right to explore for oil and natural gas in three projects in the Gulf of Martaban off Myanmar. The company is a minority shareholder in the Yadana and Yetagun gas fields in the Gulf of Martaban. Ratchaburi Electricity Generating Holding, the biggest private power producer in Thailand, buys all the natural gas it uses to generate power from Myanmar's Yadana and Yetagun fields.

Wonder how this is imported, and who gets commissions, or has other fingers in the pie ?

Myanmar has been under international sanctions since the military junta rejected the results of elections in 1990, which were won by the opposition National League for Democracy.

The United States sought a UN Security Council resolution criticizing Myanmar after the junta in May extended the house detention of the NLD leader, Aung San Suu Kyi, for a year

And Thailand shows clearly what it thinks of the UN, with its lack-of-support for democracy in Burma, how they hope to win the top job for a Thai just beats me.

Source: International Herald Tribune - 8 August 2006

[fruittbatt]

Did I miss something? Apart from the International Herald Tribune quote above there just does not seem to be any reference in the Thai press/media to this story. Yet - it seems to me- the implications of Toxin's visit have national and international significance:

as another example of dear leader using "national interest" to feather his own amply rich nest?

as an example of how international sanctions against the junta are continually sabotaged by the Thai government.

as a warning about the ways in which foreign interests are not only exploiting the political and economic crisis in Burma but are actively taking advantage of that situation to rape the environment of that country.

How ironic that Toxin's visit should occur just before the anniversary of the 1988 uprising for democracy in Burma.

[Plus]

Sanctions are imposed only by Europeans and Americans. Asean, China, and India do not have any restrictions on business with Burma. Within Asean Singapore is the biggest investor, I believe.

Getting that concession for Thailand was a good move. The question is what are trade offs? What did he promise, on behalf of all Thais, to the generals? They didn't let him have for sweet talk only.

[joe beets]

Within Asean Singapore is the biggest investor, I believe.

Would you be including ShinCorp's projects as Singaporean investments?

jb

[aaaaaa]

no wonder T goes there so frequently ! I bet that fact of Myanmar oil was known to Thais quite for soime time and perhaps to Blair & Bush too, but only now was "announced" !

I mean - who realy cares about whether that women under house arrest or not (what's her name - leader of democratic opposition there)? OIL is what matters as usually ! and since Burma is too undeveloped to accuse it too bluntly of posessing or making WMDs - well, than human right and democracy are the favorite songs to arrange the "liberation" !

I wonder - how soon since this announcvement Burma would get "liberated" as Iraq ? and would Thaksin get big enough cut of pie ?