SIX FIRMS JOIN THAI PRODUCTS LINE PROJECT

Nov. 5, 1990

Seven major oil companies operating in Thailand will participate in a $120 million proposal to lay an oil products pipeline from the country's eastern coast to the central plains. Under a preliminary agreement, state owned Petroleum Authority of Thailand (PTT) will be project operator and receive a 25% interest in the 180 km line extending from Chon Buri's Sri Racha district, where two of the nation's three oil refineries are located, to Saraburi via Chachoengsao.

Seven major oil companies operating in Thailand will participate in a $120 million proposal to lay an oil products pipeline from the country's eastern coast to the central plains.

Under a preliminary agreement, state owned Petroleum Authority of Thailand (PTT) will be project operator and receive a 25% interest in the 180 km line extending from Chon Buri's Sri Racha district, where two of the nation's three oil refineries are located, to Saraburi via Chachoengsao.

The local units of Royal Dutch/Shell Group, Exxon Corp., and Caltex Petroleum Corp. will take a 15% stake each in the project, with Kuwait Petroleum Corp., Mobil Oil Corp., and British Petroleum Co. pic taking 10% each.

The sizes of shares, yet to be formally endorsed by the companies, have been apportioned by PTT according to the size of those companies' downstream market shares and the volumes they can commit to the line. The pipeline, scheduled to start up in 1993, is aimed at relieving worsening traffic problems caused by moving products via truck and train through Bangkok.