News from Bkk Post

[tinkyi@xxxxxxx]

March 17, 1999.
French team starts pipeline inquiry
Spotlight on use of Total's investment

Nussara Sawatsawang
The French parliament has launched an investigation into the Yadana gas
pipeline project operated by Total amid growing concern about business deals
with undemocratic countries.
Marie-Helene Aubert, a French member of parliament, said yesterday a team
had inspected the project across the Thai-Burmese border, to look into its
social and environmental impact and the extent to which capital from Total's
investment had strengthened the regime in Rangoon.
The investigation of Total, a giant French oil company, is part of the
global effort by the commission. It was set up in October last year by the
French parliament in response to growing concern over the impact of
investments by global oil firms from France in foreign countries,
particularly those ruled by dictators and junta regimes. A similar project
in Cameroon is under investigation.
Ms Aubert, who heads the commission, last Thursday led a team of three
legislators to find facts in Burma and Thailand. They met Aung San Suu Kyi,
the opposition leader, Win Aung, Burma's foreign minister, Total
representatives and diplomats, and visited two Karen and Burmese-Mon
villages in Kanbauk town near the Thai border in Kanchanaburi, an area close
to the laying of the gas pipeline from the Yadana gas field.
The team on Monday tried to visit a refugee camp in Kanchanaburi but was
denied entry by Thai authorities.
Ms Aubert said the team had not found clear evidence of human rights
violations following reports local people were forcibly relocated for the
pipeline construction. But she promised to consider related accounts from
people concerned.
She also denied a report that Total and Unocal, an American oil firm in the
Yadana consortium, had financed Burmese troops to guard the pipeline, saying
the Burmese government had done so on its own.
"But what we are more interested in is whether the laying of the gas
pipeline has helped increase the role of the Burmese military," she said.
Total is the largest investor in the project with a 31.24-percent stake,
followed by Unocal with 28.26 percent and PTT Exploration and Production
with 25.5 percent.
According to Ms Aubert, the commission will complete the report and present
it to parliament in June. She said the commission would not recommend what

the French government should do but would only present verified information.
Pierre Brana, a team member, quoted Ms Suu Kyi as reaffirming her stance
that foreign firms should wait until Burma enjoys democracy before investing
in the country.

----------------------------------------------------------------------------
------------------
PTT urges consortium to defer B24b gas payment
Egat blamed for slow work on turbine

Preecha Srisathan
Kanchanaburi
The Petroleum Authority of Thailand (PTT) has been negotiating with the
consortium operating the Yadana gas field in Burma to defer an overdue
payment of US$65 million, or about 24 billion baht, for gas delivery not yet
taken, said a PTT senior executive.
The payment covered the amount of gas accumulated over the six months since
the agreed date of delivery on July 1 last year, said Piti Yimprasert,
president of PTT Gas.
PTT was contractually obligated to receive 65 million cubic feet per day
(mcfd) of gas in the initial stage, rising to 525 mcfd over 15 months after
production start-up on July 1 but it was able to receive only five mcfd.
Mr Piti blamed the delay on the Electricity Generating Authority of
Thailand's inability to finish installing a gas turbine at its large power
plant in Ratchaburi. The plant was to be the sole consumer of Yadana gas in
the initial stage.
So far, Egat has not shown eagerness to complete the plant soon because of
lower demand for electricity as a result of the economic bubble that burst
over a year ago.
Egat has not signed a gas purchase contract with PTT. Consequently, PTT is
left with the burden of paying for the gas not yet taken because of the
take-or-pay clause in its contract with the Yadana consortium.
However, PTT will attempt to ask for a deferment of the payment by citing
force majeure (an act of god) for its failure to take the gas as a result of
the economic crisis which severely affected its financial status.
Mr Piti said the negotiations with the consortium, led by Total, the French
oil firm, must be concluded this month. If no agreement was reached, the
consortium could resort to legal action against PTT, Mr Piti added.

----------------------------------------------------------------------------
-----------
THAI-BURMESE RELATIONS
Rangoon refuses to discuss sea patrol
Claims no mandate to consider surveillance

Achara Ashayagachat
Phuket
Thailand yesterday failed to secure Burma's support for joint patrols in the
Andaman Sea but was given an assurance armed Burmese fishing boats would not
be used in future conflicts.
The conclusions were reached among military officials as part of the 17th
Thailand-Burma Regional Border Committee, which formally ends its meeting
today.
Maj-Gen Sit Maung, commander of Burma's Coastal Area Command, and Maj
Tanomsak Rodsawang of Thailand's Joint Co-ordinating Centre under the
Supreme Command Office, led the working group discussion, the minutes of
which are to be approved today by the co-chairmen of the RBC, Maj-Gen Thein
Sein, chief of Burma's Triangle Region Command and Lt-Gen Taweep
Suwanasingha, commander of the First Army Region.
The Burmese claimed they had no mandate to discuss the joint patrol, the

officials noted. But their reluctance to take up the issue is believed to
stem from Rangoon's fear of sending a wrong signal to India, its neighbour
to the west, as Burmese prime minister Gen Than Shwe indicated this concern
during his visit earlier this month.
The Burmese side also rejected a proposal to draw a "patrol line" pending
completion of border demarcation, and referred the issue to the higher-level
Joint Boundary Committee that is due to meet next month, officials said.
But yesterday's discussions did bring some measures to defuse the tension
that has mounted over the past few months as a result of clashes off Ranong.
Burma agreed not to use armed fishing boats for suppression operations at
sea, and to deploy them only for transporting food and oil, officials said.
Both sides also agreed to use marine band channel 16 for contacts, and to
have naval and fishing boats fly their respective national flags.
The meeting also emphasised the need for Thai trawlers not to fish in
overlapping waters.
To promote legal fishing, the Thai delegation asked Burma to reduce
concession fees and to provide safety for those fishing legally. The Burmese
delegation took note of the request but said this was a matter for the two
countries' fisheries departments to decide.
Maj-Gen Thein Sein said the main purpose of the meeting was to strengthen
bilateral relations between the two armed forces. He played down the recent
clashes in the Andaman Sea, saying such incidents were normal for
neighbouring countries as long as there were disputed border areas. Thai
sources say the disputed waters cover some 50 nautical miles in the Andaman.
Lt-Gen Taweep said the two sides also agreed to cooperate in drug
suppression through exchanges of information.