SE Asian officials worry about oil production cuts

SE Asian officials worry about oil production cuts

Associated Press
Manila, Philippines

Thailand and the Philippines expressed concern on Wednesday
over recent reductions in world oil production, warning that
further cuts could slow global economic growth.

The two Southeast Asian countries said in a joint statement
that they will push for creation of a regional petroleum hub to
be used for stockpiling and distribution.

In addition, they said they "are moving toward strong
bilateral cooperation that would allow us to diversify our
sources of oil, as well as develop indigenous energy resources."

This could include cooperation in oil and gas exploration,
geothermal drilling, solar energy and development of alternative
power generation programs, such as the use of rice husks.

The statement came after talks between Thai Energy Minister
Prommin Lertsuridej and his Philippine counterpart Vincent Perez.

"We are urging oil-producing countries to consider not to
undertake more cuts in their oil production, as this would have
serious implications on the economies of oil-importing countries
and eventually slow down the growth of world economy," the
officials said.

"The bilateral talks we are having today is one of the many
concrete steps being undertaken to push for the optimized use of
existing infrastructures to bolster energy security" in the 10-
country Association of Southeast Asian Nations, along with China,
Japan and Korea, the statement said.

Prommin was on a two-day trip to the Philippines with a
delegation of investors that included Prasert Bunsumpun,
president of Thailand's PTT PCL.

Prasert said his company plans to invest 2 billion to 3
billion pesos (US$36 million to $54 million) to expand its
gasoline retail operations in the Philippines within five years.

PTT had considered selling its retail operations in the
Philippines as recently as two years ago.

"The economic situation changed ... so we had to review our
position," Prasert told Dow Jones Newswires.

Under the plan, PTT will expand its network of gasoline
stations to 100 from around 40 currently.

Ten nations belonging to the Organization of Petroleum
Exporting Counties( OPEC) agreed last week to curb their oil
production by as much as 2.5 million barrels a day, or by nearly
10 percent. The move is expected to lead to higher prices for
gasoline and other refined products worldwide