RIYADH, 11 May 2007 — Saudi Arabia and Thailand have set out a new vision of cooperation in energy sector, with Bangkok announcing plans to import more oil from the Kingdom and explore joint projects.
“Thailand is working on plans to import more crude oil from the Kingdom,” said Thailand’s Energy Minister Piyasvasti Amranand, who is visiting the Kingdom on the invitation of Minister of Petroleum and Mineral Resources Ali Al-Naimi.
Amranand said “this is a new move to boost cooperation between Riyadh and Bangkok especially in energy sector after a period of strained relations.” Thailand, he said, is a major energy-consuming nation, with crude oil consumption exceeding 800,000 barrels a day.
“Hence, there is a need to boost Saudi-Thai cooperation in this sector,” said Amranand, adding that the two countries can work together on improving refining capacity and boosting Saudi oil supplies.
Referring to the Saudi-Thai cooperation in energy sector, the Thai minister said that “Bangkok is a net importer of oil from the Gulf states, including Saudi Arabia.” He said “energy consumption of Thailand is projected to grow three million barrels a day by 2015.”
The two-way trade has been in the region of $3 billion annually, while total Saudi investment in Thailand exceeds $1 billion.
“There are several opportunities for Saudi and Thai companies to work together in different sectors,” said the minister, noting that the Thai energy ministry is opening a new bidding round for concession of 65 onshore and offshore petroleum blocks.
This 20th petroleum concession bidding, which will be for a period of one year, covers a total area of 235,576 square kilometers.
Besides, Thailand’s state-owned oil and gas conglomerate — PTT Pcl and its subsidiaries — had announced plans to invest billions of dollars in this sector during the next five years. “We are always concerned about oil supplies to our part of the world,” said the Thai minister.
He pointed out that the local retail fuel prices in Thailand would further edge up slightly in line with the global crude oil price volatility.
The Organization of Petroleum Exporting Countries viewed global prices — which stay in a range of $50 per barrel — do not reflect the actual production costs.
Moreover, Amranand said Thai oil companies have been working on different energy projects, including oil pipeline projects, with different countries especially the ASEAN members. “With the remarkable expansion of PTTEP business operations, both domestically and internationally, this Thai company is currently working on several such proposals,” the minister added.
