Agreement between PTT and the partners of Yadana
The following news release was issued by TotalFina on behalf of the Yadana project consortium.
Bangkok, Aug. 5, 1999 -- The Petroleum Authority of Thailand (PTT), and the partners of Yadana - TotalFina, Unocal, PTTEP and MOGE recently signed an agreement related to the contractual quantities of gas not purchased in 1998 and 1999.
The Yadana gas field, located in Myanmar, is operated by TotalFina. The construction of the offshore facilities and the lay down of the pipelines from Yadana to Ratchaburi were completed in mid 1998, but PTT was unable to take the gas due to the delay in the construction of the EGAT Ratchaburi Power Plant.
This agreement stipulates that PTT agrees to accept the gas without enrichment from now to December 2006; in return, price reductions for the gas contractual quantities corresponding to the first 15 months (August 1998 - October 1999) of the original gas sales agreement are granted to PTT. Other terms and conditions in the original gas sales agreement remain the same.
PTT will pay for the 1998 gas contractual quantity, totaling 50.47 million USD, before Aug. 31, 1999. Such quantity will then be delivered on top of the contractual quantities, free, to PTT to be used by Ratchaburi power plants and other consumers in Thailand as soon as the gas demand becomes sufficient.
All parties are confident that this agreement is the outcome of an extremely good co-operation between the buyer and the sellers. It protects the interests of all the parties and strengthens their good relations for the coming 30 years (duration of the EGSA).
Forward-looking statements regarding future operations, capital spending, and business arrangements in this news release are based on assumptions concerning market, competitive, regulatory, environmental, operational and other considerations. Actual results could differ materially. Actual results could differ materially as a result of factors discussed in Unocal's 1998 Form 10-K report filed with the Securities and Exchange Commission.
Updated: August 1999