Thai-Cambodian oil talks stall
Border dispute blocks long-sought deal
YUTHANA PRAIWAN & NAREERAT WIRIYAPONG
Negotiations involving overlapping claims to undersea oil and natural gas fields in the Gulf of Thailand are likely to drag on as both Thailand and Cambodia still need to seek agreement on the disputed border area, says Krairit Nilkuha, the director-general of the Department of Mineral Fuels.
The two countries had opened negotiations in 1995 in a bid to tap into potentially rich reserves.
The talks led to a memorandum of understanding signed in 2001 by the Thai and Cambodian prime ministers.
Under the pact, they agreed in principle to join in development and share profits from a total of eight blocks of petroleum fields in the overlapping claims area (OCA).
The 2001 agreement still needs approval of the Thai House of Representatives to comply with provisions in the 2007 Constitution governing international agreements and treaties.
However, the main obstacle centres on two petroleum blocks, designated Block 5 and 6, where clarification of the disputed sea border is still sought.
Since the memorandum of understanding was signed in 2001, only five meetings have been held with no real progress made, even though both sides have clearly expressed their willingness to reach a conclusion as soon as possible.
Committees and working groups are working to seek an agreeable solution for the whole 26,000-square-kilometre OCA.
Leaders from both countries last failed to hammer out a formal arrangement in 2006 during a visit to Cambodia by former prime minister Thaksin Shinawatra.
However, Mr Krairit said he was optimistic that negotiations could be concluded soon, with a goal of seeing production from the areas begin within 10 years.
''All state agencies related to the OCA are accelerating efforts to seek the best solution that could help resolve the disputed sea border between the two countries, so we could resume talks,'' he said.
Thailand first awarded exploration licences to work in the areas in 1968 to Idemitsu, Chevron, British Gas and Mitsui Oil.
However, the dispute first arose in 1972 when Cambodia claimed its overlapping sea border. The Phnom Penh government also later awarded the licences over the exact same areas in 1997 to Conoco Phillips, Shell and Idemitsu.
As the dispute remains, those licence holders are unable to gain access to the areas in question.
Mr Krairit said he believed that resources in the area were plentiful, based on results from blocks nearby in the Pattani basin in Thai territory, where there are proved reserves of 5.4 trillion cubic feet of natural gas by US-based Chevron and Thailand's PTT Exploration and Production.
No data on petroleum reserves within the disputed areas have been revealed due to the extreme sensitivity of the border claims.
Mr Krairit said the talks should rely on the International Territory Law following the model of a Thai-Vietnamese sea territory clarification in 1997, or the Malaysia-Thailand Joint Development Area (JDA) in 1990.
Viraphand Vacharathit, the Thai ambassador to Cambodia, agreed that the prospects for the talks seemed brighter, adding that the two governments had agreed in principle that the benefit-sharing model of the Thailand-Malaysia JDA was the best solution.
''What has yet to be concluded is sharing ratio for the spilt of the resources,'' said the ambassador.
Authorities on both sides have discussed OCA issues occasionally. Talks have been positive so far because both parties want to reap benefits from the untapped gas deposits.
''It is believed that the OCA has more natural gas reserves than oil. However, the amount of reserves has yet to be confirmed,'' Mr Viraphand said.
Showing posts with label Property News. Show all posts
Showing posts with label Property News. Show all posts
Sunday, August 31, 2008
Boathouse taps affordability
PROPERTY
Boathouse taps affordability
NINA SUEBSUKCHAROEN
HUA HIN : Speed and adaptability help in any game of life, and the developers of Boathouse Hua Hin have applied this by introducing lower-priced townhouses in tune with the current cautious mood.
Praphaisith Tankeyura, managing director of the Cha-am based 80-rai development bordering Hua Hin beach, said that instead of building 13-million-baht villas he has subdivided the land for townhouses.
The development will now feature 5.3-million-baht two-storey houses on its 24-square-wah plots closest to the sea along with 4.7-million-baht three-storey houses on 35-square-wah plots further from the sea.
There will also be semi-detached duplex houses on 46 to 66 sq wah plots, which will be priced between 5.6 and 7.9 million baht, depending on their proximity to the sea.
Reflecting a cost-conscious shift in investor sentiment over the last three years, the cheaper units are selling best.
Among locals _ who love the seaside town and make up 70% of buyers _ the strategy is also working well. Mr Praphaisith admits, though, that his company has had less success in Dubai and among Thais in New York.
In the United States, he found that parents are still attached to Hua Hin but their children ''are already Americanised''.
''They no longer want to stay in Hua Hin or Thailand,'' he said.
Two-storey houses on 24-square-wah plots closest to the sea will sell for 5.3 million baht.
In Dubai, promising leads turned out to be speculators unwilling to place a 30% down payment.
Mr Praphaisith's next target is Singapore, where he plans to participate in a marketing event in October.
But in all overseas markets, he says he faces a perception of economic and political problems that has kept foreigners away from all of Thailand's sectors.
''Overseas investors are nervous about Thailand,'' he said. ''They don't understand the real situation. As we are Thai, we know that Thaksin comes and goes, governments come and go, but the system is still here and still works.''
If this hurdle can be overcome, he claims his development can attract buyers through occupying a different niche to other resorts such as Phuket, where medium- and low-priced developments have suffered.
He dismisses Koh Samui as hamstrung by poor town planning. ''It will be a mess in future,'' he said.
Nor does he see a threat in Pattaya's continuing success.
''The buyers are not the family type,'' he said. ''It's a different market. Hua Hin is family-oriented plus you have a lot of golf courses, a lot of cultural attractions. We have good food and restaurants too.''
He claims Boathouse Hua Hin also has an edge over other developments because it obtained its land a few years ago at only three million baht a rai _ rather than at the 50-million-baht price tag prime plots carry today.
''Our condominiums are selling for less than 100,000 baht a square metre. On the top floor it's around 90,000 baht (a square metre). On the lower floor it's around 60,000 baht,'' he said.
The advantages of starting early carry into construction.
''When we signed the contract with Christiani and Nielsen to develop the infrastructure, one barrel of oil was only 37 dollars,'' he said.
As with many developments in the current inflationary context, Boathouse Hua Hin is being built with a focus on costs and with the application of value engineering to increase construction efficiency.
The potential risks of overlooking such considerations, says Mr Praphaisith, are illustrated by a Bangkok-based property company that failed to lock in construction costs before selling 70% to 80% of its units.
Mr Praphaisith said he hoped that all of Boathouse Hua Hin's 40 townhouses and duplex houses would be sold this year. Construction of these relatively simple structures should then start next year and finish by the end of 2009.
The selling of units in two more condominium buildings would then be launched, with construction starting once 40% are sold.
He added that Boathouse Hua Hin was launched with an 800-million-baht bank loan _ in addition to 720 million in cash _ and that he hoped 500 million baht would be repaid to the bank by the end of this year when units in the project's Condominium C will be transferred to buyers.
Boathouse taps affordability
NINA SUEBSUKCHAROEN
HUA HIN : Speed and adaptability help in any game of life, and the developers of Boathouse Hua Hin have applied this by introducing lower-priced townhouses in tune with the current cautious mood.
Praphaisith Tankeyura, managing director of the Cha-am based 80-rai development bordering Hua Hin beach, said that instead of building 13-million-baht villas he has subdivided the land for townhouses.
The development will now feature 5.3-million-baht two-storey houses on its 24-square-wah plots closest to the sea along with 4.7-million-baht three-storey houses on 35-square-wah plots further from the sea.
There will also be semi-detached duplex houses on 46 to 66 sq wah plots, which will be priced between 5.6 and 7.9 million baht, depending on their proximity to the sea.
Reflecting a cost-conscious shift in investor sentiment over the last three years, the cheaper units are selling best.
Among locals _ who love the seaside town and make up 70% of buyers _ the strategy is also working well. Mr Praphaisith admits, though, that his company has had less success in Dubai and among Thais in New York.
In the United States, he found that parents are still attached to Hua Hin but their children ''are already Americanised''.
''They no longer want to stay in Hua Hin or Thailand,'' he said.
Two-storey houses on 24-square-wah plots closest to the sea will sell for 5.3 million baht.
In Dubai, promising leads turned out to be speculators unwilling to place a 30% down payment.
Mr Praphaisith's next target is Singapore, where he plans to participate in a marketing event in October.
But in all overseas markets, he says he faces a perception of economic and political problems that has kept foreigners away from all of Thailand's sectors.
''Overseas investors are nervous about Thailand,'' he said. ''They don't understand the real situation. As we are Thai, we know that Thaksin comes and goes, governments come and go, but the system is still here and still works.''
If this hurdle can be overcome, he claims his development can attract buyers through occupying a different niche to other resorts such as Phuket, where medium- and low-priced developments have suffered.
He dismisses Koh Samui as hamstrung by poor town planning. ''It will be a mess in future,'' he said.
Nor does he see a threat in Pattaya's continuing success.
''The buyers are not the family type,'' he said. ''It's a different market. Hua Hin is family-oriented plus you have a lot of golf courses, a lot of cultural attractions. We have good food and restaurants too.''
He claims Boathouse Hua Hin also has an edge over other developments because it obtained its land a few years ago at only three million baht a rai _ rather than at the 50-million-baht price tag prime plots carry today.
''Our condominiums are selling for less than 100,000 baht a square metre. On the top floor it's around 90,000 baht (a square metre). On the lower floor it's around 60,000 baht,'' he said.
The advantages of starting early carry into construction.
''When we signed the contract with Christiani and Nielsen to develop the infrastructure, one barrel of oil was only 37 dollars,'' he said.
As with many developments in the current inflationary context, Boathouse Hua Hin is being built with a focus on costs and with the application of value engineering to increase construction efficiency.
The potential risks of overlooking such considerations, says Mr Praphaisith, are illustrated by a Bangkok-based property company that failed to lock in construction costs before selling 70% to 80% of its units.
Mr Praphaisith said he hoped that all of Boathouse Hua Hin's 40 townhouses and duplex houses would be sold this year. Construction of these relatively simple structures should then start next year and finish by the end of 2009.
The selling of units in two more condominium buildings would then be launched, with construction starting once 40% are sold.
He added that Boathouse Hua Hin was launched with an 800-million-baht bank loan _ in addition to 720 million in cash _ and that he hoped 500 million baht would be repaid to the bank by the end of this year when units in the project's Condominium C will be transferred to buyers.
Thursday, August 28, 2008
Engagement and dialogue to drive sustainable growth
PROPERTY INSIGHTS
Engagement and dialogue to drive sustainable growth
NIGEL CORNICK
To prosper during these times of economic uncertainty, Thailand's luxury property developers are turning to innovative and long-term developmental activities to effectively target Thai and foreign buyers.
Rapidly rising construction material prices, increasing fuel costs and escalating inflation could threaten property investors' confidence, yet it remains important for developers to engage the wider community to help customers make wise decisions.
Lifestyle is a critical component of today's luxury property market, and upmarket buyers need to be assured that not only the project but its location fits the bill. Property developers would therefore do well to engage in activities that promote and enhance a locale's lifestyle.
Take the Chao Phraya River area, and the Thon Buri side of the river in particular, so long seen as the poor cousin of the side that boasted The Oriental, Shangri-La and Royal Orchid Sheraton hotels on its banks as well as the key business districts of the city along Silom and Sukhumvit roads.
Serious efforts are now underway to bring both sides of the river together and promote an exclusive lifestyle community on the Chao Phraya that provides customers of riverside projects with a high-end experience and specifically encourages Thais to rediscover life on the river.
To assist in this development, Les Ateliers recently organised the Bangkok River City Workshop for the Bangkok Metropolitan Administration, with sponsorship from Raimon Land.
The workshop focused on the valuation of the Chao Phraya River and how it could be better integrated into the metropolis. The meeting also analysed the river's economics, lifestyle opportunities, transport possibilities and its image. The river's evolution was discussed from its days as a transport route to its modern role as a vital link to the city.
Topics such as access, landscape design, water quality, and the notion of riverfront community, commercial activity and promotion were discussed by the international city-planning experts who attended the workshop. Examples of urban planning in other major cities around the world like Paris and London were also examined.
Les Ateliers is a 26-year-old global network of urban designers that holds creative workshops on urban issues and it is through such organisations that we can build a sustainable future for the city. While the workshop's content was informative, bringing industry stakeholders together was also an important achievement. Only close collaboration between the private and public sectors can chart the future course of Thailand's property industry and ensure it benefits all sectors of society and the environment.
Through an educated dialogue, the industry can establish a vision for the future and lobby for change. Our research publications this year and three discussion forums in Bangkok, Pattaya and Phuket have embraced this thinking.
The most recent event called "Why Invest Phuket Forum", held at the Marriott Courtyard on Surin beach in Phuket, focused on how the property industry could better cater to local and international investors and to related industries and authorities. It was attended by local government officials, association representatives and senior executives from property developers and agents
Phuket's deputy governor Smith Palawatvichai shared his opinions in an open dialogue, giving information on improving the property sector's operating environment, which in turn would provide growth for Phuket's economy and meaningful employment for its citizens. I will expand on what was said at the forum in future editions of this column.
These efforts are part of meaningful strategies to raise Thailand's profile in the international investment and lifestyle community and to support the long-term development of the property industry.
Investors are more sophisticated than ever and their demands are greater. As an industry, it is up to us to meet and exceed their expectations with high-quality products, marketing and follow-through and to continue to position Thailand as a superb investment with the world's most enviable lifestyle.
All property developers can contribute to this. There is little doubt we can produce the quality of developments that are built in other mature markets. As a group we can forward the cause of Thailand's property market by proving we can compete with other countries in terms of design and quality, and this is a message we need to communicate clearly.
Once this is done, we can grow Thailand's reputation as a country that can be trusted to deliver solid residential developments and better planned urban environments.
Nigel Cornick is Chief Executive Officer of Raimon Land Plc, Thailand's premier luxury property developer with projects in Bangkok, Phuket and Pattaya. For more information visit http://www.raimonland.com
Engagement and dialogue to drive sustainable growth
NIGEL CORNICK
To prosper during these times of economic uncertainty, Thailand's luxury property developers are turning to innovative and long-term developmental activities to effectively target Thai and foreign buyers.
Rapidly rising construction material prices, increasing fuel costs and escalating inflation could threaten property investors' confidence, yet it remains important for developers to engage the wider community to help customers make wise decisions.
Lifestyle is a critical component of today's luxury property market, and upmarket buyers need to be assured that not only the project but its location fits the bill. Property developers would therefore do well to engage in activities that promote and enhance a locale's lifestyle.
Take the Chao Phraya River area, and the Thon Buri side of the river in particular, so long seen as the poor cousin of the side that boasted The Oriental, Shangri-La and Royal Orchid Sheraton hotels on its banks as well as the key business districts of the city along Silom and Sukhumvit roads.
Serious efforts are now underway to bring both sides of the river together and promote an exclusive lifestyle community on the Chao Phraya that provides customers of riverside projects with a high-end experience and specifically encourages Thais to rediscover life on the river.
To assist in this development, Les Ateliers recently organised the Bangkok River City Workshop for the Bangkok Metropolitan Administration, with sponsorship from Raimon Land.
The workshop focused on the valuation of the Chao Phraya River and how it could be better integrated into the metropolis. The meeting also analysed the river's economics, lifestyle opportunities, transport possibilities and its image. The river's evolution was discussed from its days as a transport route to its modern role as a vital link to the city.
Topics such as access, landscape design, water quality, and the notion of riverfront community, commercial activity and promotion were discussed by the international city-planning experts who attended the workshop. Examples of urban planning in other major cities around the world like Paris and London were also examined.
Les Ateliers is a 26-year-old global network of urban designers that holds creative workshops on urban issues and it is through such organisations that we can build a sustainable future for the city. While the workshop's content was informative, bringing industry stakeholders together was also an important achievement. Only close collaboration between the private and public sectors can chart the future course of Thailand's property industry and ensure it benefits all sectors of society and the environment.
Through an educated dialogue, the industry can establish a vision for the future and lobby for change. Our research publications this year and three discussion forums in Bangkok, Pattaya and Phuket have embraced this thinking.
The most recent event called "Why Invest Phuket Forum", held at the Marriott Courtyard on Surin beach in Phuket, focused on how the property industry could better cater to local and international investors and to related industries and authorities. It was attended by local government officials, association representatives and senior executives from property developers and agents
Phuket's deputy governor Smith Palawatvichai shared his opinions in an open dialogue, giving information on improving the property sector's operating environment, which in turn would provide growth for Phuket's economy and meaningful employment for its citizens. I will expand on what was said at the forum in future editions of this column.
These efforts are part of meaningful strategies to raise Thailand's profile in the international investment and lifestyle community and to support the long-term development of the property industry.
Investors are more sophisticated than ever and their demands are greater. As an industry, it is up to us to meet and exceed their expectations with high-quality products, marketing and follow-through and to continue to position Thailand as a superb investment with the world's most enviable lifestyle.
All property developers can contribute to this. There is little doubt we can produce the quality of developments that are built in other mature markets. As a group we can forward the cause of Thailand's property market by proving we can compete with other countries in terms of design and quality, and this is a message we need to communicate clearly.
Once this is done, we can grow Thailand's reputation as a country that can be trusted to deliver solid residential developments and better planned urban environments.
Nigel Cornick is Chief Executive Officer of Raimon Land Plc, Thailand's premier luxury property developer with projects in Bangkok, Phuket and Pattaya. For more information visit http://www.raimonland.com
Saturday, August 23, 2008
NHA pushes sales before prices rise
PROPERTY
NHA pushes sales before prices rise
KANANA KATHARANGSIPORN
The National Housing Authority (NHA) will hold a Baan Ua-arthorn low-cost housing fair, offering nearly 64,000 units worth a combined 24.57 billion baht before raising unit prices by another 30,000 to 50,000 baht, governor Suchart Siriyothipan said yesterday.
Among the units offered, 5,000 will be resale units that the NHA bought back as non-performing loans (NPLs) from the Government Housing Bank (GH Bank).
Sales from the event from Aug 29 to Sept 7 will help NHA reduce inventory and also repay GH Bank, which lent the authority funds to buy back units, a sum that has almost reached the maximum of 780 million baht.
Mr Suchart said the 63,961 units being offered would be from 68 projects, with more than 43,000 units located in Greater Bangkok and 86 projects with 20,000 units located elsewhere.
Of the total, 36,037 units were completed units at 94 projects, while 27,712 units from 60 projects are under construction and ready to transfer within three months. The NHA expects to sell between 15,000 and 20,000 units from the fair.
The NHA posted sales of 12,000 units worth a combined 4.68 billion baht from the first Baan Ua-arthorn low-cost housing fair held in March.
Mr Suchart said the NHA would seek cabinet approval to raise prices for units in some locations including Lat Krabang, Wat Sri Waree Noi and Rarm Intra. New prices would result in additional installment payments of 300 baht per month.
''If we get approval, the minimum household income requirement of buyers will increase to 40,000 baht a month from the current 30,000 baht,'' he said.
The NHA will also ask the cabinet to agree on big-lot sales of condo units at prices of 390,000 baht each, discounted from the current 470,000 baht, to interested buyers such as factory owners who could rent them out to workers. It would ban further resales in order to prevent speculation.
Currently, there were 12 projects with 15,000 units in Samut Sakhon and Nakhon Pathom that are seen as attractive for big-lot sales.
NHA pushes sales before prices rise
KANANA KATHARANGSIPORN
The National Housing Authority (NHA) will hold a Baan Ua-arthorn low-cost housing fair, offering nearly 64,000 units worth a combined 24.57 billion baht before raising unit prices by another 30,000 to 50,000 baht, governor Suchart Siriyothipan said yesterday.
Among the units offered, 5,000 will be resale units that the NHA bought back as non-performing loans (NPLs) from the Government Housing Bank (GH Bank).
Sales from the event from Aug 29 to Sept 7 will help NHA reduce inventory and also repay GH Bank, which lent the authority funds to buy back units, a sum that has almost reached the maximum of 780 million baht.
Mr Suchart said the 63,961 units being offered would be from 68 projects, with more than 43,000 units located in Greater Bangkok and 86 projects with 20,000 units located elsewhere.
Of the total, 36,037 units were completed units at 94 projects, while 27,712 units from 60 projects are under construction and ready to transfer within three months. The NHA expects to sell between 15,000 and 20,000 units from the fair.
The NHA posted sales of 12,000 units worth a combined 4.68 billion baht from the first Baan Ua-arthorn low-cost housing fair held in March.
Mr Suchart said the NHA would seek cabinet approval to raise prices for units in some locations including Lat Krabang, Wat Sri Waree Noi and Rarm Intra. New prices would result in additional installment payments of 300 baht per month.
''If we get approval, the minimum household income requirement of buyers will increase to 40,000 baht a month from the current 30,000 baht,'' he said.
The NHA will also ask the cabinet to agree on big-lot sales of condo units at prices of 390,000 baht each, discounted from the current 470,000 baht, to interested buyers such as factory owners who could rent them out to workers. It would ban further resales in order to prevent speculation.
Currently, there were 12 projects with 15,000 units in Samut Sakhon and Nakhon Pathom that are seen as attractive for big-lot sales.
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