Oleh/By : DATO' SERI DR. MAHATHIR BIN MOHAMAD
Tempat/Venue : SONGKHLA, THAILAND
Tarikh/Date : 22/04/98
Tajuk/Title : THE CEREMONY FOR THE SIGNING OF THE
HEADS OF AGREEMENT (H.O.A) ON THE
GAS SALES AGREEMENT FOR THE JDA GAS
It gives me great pleasure to be here today to
witness the signing of the Heads of Agreement (H.O.A.)
on the Gas Sales Agreement for the gas to be produced
from the Malaysia-Thailand Joint Development Area. It
was almost twenty years ago when the idea to jointly
develop the hydrocarbon resources in the overlapping
Joint Development Area or J.D.A. was first mooted. Even
though it took some time for the two countries to
resolve and agree on an appropriate arrangement to
jointly exploit the hydrocarbon resources in the J.D.A.,
steady progress has been achieved along the way,
especially after the Production Sharing Contracts for
the Blocks in the J.D.A. were awarded in 1994. I have
been made to understand that substantial gas reserves,
amounting to some 10 trillion cubic feet, have been
discovered in the J.D.A., making it viable to proceed
with commercial development and production.
2. The signing of the H.O.A. today therefore
represents a significant milestone with regard to the
progress and development of the J.D.A. which is the
first of such a unique joint cooperation between two
countries based on a win-win concept. While this key
development would further strengthen and enhance the
bilateral relationship between our two nations, it will
also stand out as a precedent that such approach is
indeed workable as a means to resolve territorial
disputes.
3. The signing of this agreement marks the
commencement of an integrated development of the J.D.A.
project where gas production will commence by mid-2001.
The natural gas from the fields offshore will be landed
onshore through a pipeline for processing by a Gas
Separation Plant (G.S.P.) in Songkhla for use by the end-
users in the power, industrial, commercial as well as
residential sectors. These infrastructure development
projects, namely the pipeline project to be known as
Trans-Thailand-Malaysia Pipeline System (T.T.M.) and the
G.S.P. will be jointly developed and operated by the
Petroleum Authority of Thailand (P.A.T.) and Petroliam
Nasional Berhad (PETRONAS).
4. Offshore, the T.T.M. pipeline will be extended from
Songkhla and connected to the Peninsular Gas Utilisation
(P.G.U.) pipeline at Changlun in Kedah, marking another
major step towards realising the trans-ASEAN Gas Grid
project. Indeed, Malaysia's P.G.U. project has provided
the building block for the realisation of the trans-
ASEAN Gas Grid project and the T.T.M. pipeline project
will certainly serve as the much needed and awaited
linkage to bring the ASEAN Gas Grid project into
reality.
5. The unfolding of events over the last several
months has demonstrated and emphasised the inter-
connection and inter-dependency of economies in the
region, especially among ASEAN member countries. Today,
this inter-dependency has become even more critical as
we join our efforts to overcome the challenges we are
facing. In this regard, the joint cooperation by our
two national oil companies to undertake this integrated
project is certainly timely and welcomed to provide an
additional impetus to revitalise the economies of
Thailand and Malaysia which have been affected by the
regional economic and financial crises. This spirit of
joint cooperation, which also comes under the Indonesia-
Malaysia-Thailand Growth Triangle framework, stands as a
testimony to the "prosper-thy-neighbour" philosophy we
have been advocating.
6. The implementation of this project will serve as a
catalyst for industrial development in Southern Thailand
and the Northern part of Malaysia. As proven in Kertih
in Malaysia, the establishment of the necessary
infrastructure will attract investments, both local and
foreign, especially in the related downstream industries
which will help to transform Southern Thailand and
Northern Malaysia into a new industrial and commercial
area. Concurrently, this development will generate
employment opportunities which will particularly benefit
the peoples in Southern Thailand and Northern Malaysia.
7. A large and important infrastructure project of
this nature would certainly require close cooperation
and coordination by and between the relevant authorities
of the two countries to ensure its smooth
implementation. I would like to take this opportunity
to call upon the relevant authorities of both
Governments to extend their support and cooperation to
the project for the benefit of the people of our
countries.
8. To conclude, I would like to congratulate all the
parties involved for their efforts and contributions
towards materialising this project. I hope this spirit
of co-operation and mutual understanding will continue
to prevail in the course of the implementation and
operation of the project and wish the project every
success.
|