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Gas Deal



Received: (from strider) by igc2.igc.apc.org (8.6.9/Revision: 1.7 ) id DAA04140; Fri, 3 Feb 1995 03:48:58 -0800
Date: Fri, 3 Feb 1995 03:48:58 -0800

Status: R


02-02-95,05:48:50p r ibc-burma-gas 2-2
 Burma, Thailand sign big gas deal
    By Tavorn Tammachatwichit
   Bangkok, Feb. 2 (Upi) -- Thai Prime Minister Chuan Leekpai presided at
the signing of a controversial contract Thursday to pipe 10 billion baht
(d400 million) worth of natural gas per year across southern Burma to
energy-hungry Thailand. 
   Along with Thai and Burmese government officials, the signing ceremony
at the Government House in Bangkok was attended by representatives of the
two international petroleum companies with interests in the huge project,
Unocal of the United States and Total of France. 
   The project has been criticized on environmental grounds and by ethnic
minorities living in Burmese territory through which the pipeline will be
laid. 
   The signing was the culmination of three years of exploration and
negotiation by the two petroleum giants, the Myanmar Oil and Gas
Enterprise of Burma, the Petroleum Authority of Thailand and the
Electricity Generating Authority of Thailand. 
   Officials said the 30-year agreement calls for drilling about 1.2 miles
(2 km) beneath Burma's Gulf of Martaban in the Tadana field, which has
proven reserves of 5.7 trillion cubic feet of natural gas. 
   The gas will then be sent by pipeline 250 miles (400 km) to the Thai
border through areas formerly held by ethnic Mon and Karen insurgents
opposed to the ruling military junta in Rangoon. 
   "This contract marks the first time Thailand has bought natural gas
from a foreign drilling field," Chuan said at the signing ceremony.
"Working together will not just be of economic advantage to Thailand and
the Union of Burma, but will help promote friendship and understanding
between our two countries." 
   On behalf of Rangoon, Burmese Energy Minister U Khin Maung Thein said
his government "had been seeking the opportunity to produce and utilize
natural gas for the benefit of the country. Later we could realize the
project to supply natural gas to Thailand for 30 years. I believe that
this project would contribute towards the development programs in Myanmar
(Burma) and Thailand." 
   J.M. Beuque, Total's chief executive for Far East exploration and
production, told United Press International he expected that partners in
the pipeline venture would spend d800 million by July 1998, when the gas
is scheduled to start flowing. 
   "Everybody knows that due to economic growth Thailand needs energy,
especially natural gas," he said. "We are dedicated to the Southeast Asian
area where we already have achieved substantial successes in the past
years." 
   Representatives of Burma's ethnic Mon minority have claimed that as
many as 3,000 Mon villagers will have to be moved to make way for
the gas pipeline.
   Mon and Karen rebels have linked a major Burmese military offensive
currently under way against rebels near the border to the pipeline and
other Rangoon government development schemes. 
   Human rights groups have accused the Burmese junta of using thousands
of "porters" and other unpaid workers -- virtual slave laborers -- on
infrastructure projects. 
   Opponents of the Rangoon regime have also criticized foreign companies
for investing in Burma despite widespread reports of human rights abuses
by the Burmese military. 
 upi 10:07 gmt ;02021034 ---End---