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Petroleum Concession in Thailand

24 Mar Petroleum Concession in Thailand (Newsletter March 2016 Part 1)

Newsletter Juslaws & Consult (J&C) – March 2016 Part 1: Petroleum Concessions in Thailand

Thailand is opening its 21th bidding round for oil and gas exploration concessions by the middle of 2016. The current concessions will expire around 2021. The next bidding round has been delayed due to intervention from NGOs, in particular environmental activists.

The oil and gas concessions in Thailand are particularly interesting for petroleum companies asthe Thai government is participating in the profits from oil and gas exploration at a rate of totaling roughly 67% which is less than in the neighboring countries, where the government share on average equals 74%. In the case of Thailand the government share consist of sliding scale royalty based on production, a specified (50 percent) petroleum income tax applied to profits, and a special-benefit windfall profit tax. On the other hand the average discovery size in Thailand is small compared to other countries in Southeast Asia (7 million barrel of oil equivalent). In the new bidding round Thailand will offer 29 petroleum blocks – comprising 23 onshore blocks and six offshore blocks in the Gulf of Thailand – stretching over 66,463 square kilometers. One can expect a discovery of 1 to 5 trillion cubic feet of gas and 20 to 25 million barrels of crude oil.

In Thailand today the oil and gas exploration is dominated by U.S. companies besidesthe Thai PTT. The two big player in the industry in Thailand are at the moment Chevron and PTT. PTT emerged from the former state-owned Petroleum Authority of Thailand, back then under the control of the Ministry of Industry. After privatization PTT became PTT Public Company Limited, a huge holding company with several affiliate companies. Oil refinement is currently conducted by by Bangchak Petroleum Public Co., Ltd., Star Petroleum Refining Co., Ltd., Thai Oil Public Co., Ltd., and PTT Aromatics and Refining Public Co., Ltd. PTT is a significantshareholder in most of Thailand’s oil refining companies.The new biding round was preceded by substantial legislative changes of the regulatory framework governing the oil and gas license system. Environmentalists had urged a conversion from the existing concession system to production sharing contracts. The new legislation instead provides a choice for the petroleum companies between these two systems. If you would like to find out more about the different types of license agreementsforthe oil and gas industry, please contact us.

Part 2: GTCC Membership

Part 3: Boi Seminar

Part 4:Thailand Japan Young Entrepreneurs Networking

Part 5: PPP and Civil Construction Projects in Thailand

Part 6: 2016 Acquisition of Hotels & Resorts in Thailand and Due Diligence Report

Cooperation Agreement signed with Chinese company Delsk

01 Arp Cooperation Agreement signed with Chinese company Delsk

Last Monday 21st of March Juslaws & Consult (J&C) signed a strategic cooperation agreement with Delsk, one of the biggest companies in mainland China specialized on immigration services, investment and real estate.

The signing of the agreement is the result of long track of joint work, meetings and tight cooperation among the Thai law firm and the Thai subsidiary of the Chinese Corporation.

The agreement will implement immigration programs in Europe and real estate investments in Portugal and Spain of foreign clients looking for second residence.  Mr. Xue Dan, director of Delsk in Thailand and Mr. Yuthana Promsin, managing partner of J&C signed the agreement that will allow individuals investing in commercial or residential properties above 500,000 euro to have free access to European Union and Schengen area.

On the frame of this agreement a delegation of lawyers of J&C will visit Delsk headquarter in Beijing on May 2016.The agreement will allow our firm to advice and provide premium services and advice our clients on immigration law in Europe and second residency programs.

Smart Visa Making Long Stay In Thailand Easier

09 Mar Smart Visa Making Long Stay In Thailand Easier

For the purpose of further promoting the Eastern Economic Corridor and a value-based, innovative, and technology-driven economy under the Thailand 4.0 policy, the Board of Investment (BOI) has launched the SMART Visa program as of February 1, 2018. The program is designed to attract more science and technology experts, senior executives, investors and startup entrepreneurs to work or invest in Thailand in relation to the targeted industries. This article is to make a summary of the program and provide our preliminary observation

 

Targeted Industries

The SMART Visa is designed for the targeted industries as announced by BOI under the Thailand 4.0 policy, namely:

  • Next-Generation Automotive
  • Smart Electronics
  • Affluent, Medical and Wellness Tourism
  • Agriculture and Biotechnology
  • Food for the Future
  • Automation and Robotics
  • Aviation and Logistics
  • Biofuels and Biochemicals
  • Digital
  • Medical Hub

 

Eligible People

There are 5 types of SMART Visa, applicable to different categories of persons respectively:

  • SMART “T”: Highly skilled technical professionals
  • SMART “I”: Investors
  • SMART “E”: Senior executives
  • SMART “S”: Foreign startup entrepreneurs
  • SMART “O”: Spouse and children of holders of the other types of SMART Visa

 

Privileges

A SMART Visa offers the following privileges (compared with the non-immigrant visa) to the holder:

  • Longer term of stay: maximum 4 years for types T, I and E, and renewable for unlimited times, but not exceeding the remaining employment/service contract term; for type S, 1 year for the first term, and renewable for maximum 2 years for unlimited times
  • No work permit is required
  • Frequency for reporting to the Immigration Bureau is extended from every 90 days to every 1 year
  • No re-entry permit is required
  • Spouses and children are allowed to stay and work in Thailand without the work permit

 

Qualifications

SMART T

  1. Science and technology experts
  2. Salary ≥ 200,000 baht/month
  3. Employment contract or service contract in Thailand with remaining validity term ≥ 1 year
  4. Employing companies being in the targeted industries

SMART E

  1. High-level executives such as Chairman or Managing Director
  2. Holder of Bachelor’s degrees or higher with work experience ≥ 10 years
  3. Salary ≥ 200,000 baht/month
  4. Employment contract or service contract in Thailand with remaining validity term ≥ 1 year
  5. Working for companies using technology in manufacturing or delivering services and being in the targeted industries

SMART I

  1. Minimum direct investment of 20 million baht
  2. Investing in companies using technology in manufacturing or delivering services and being in the targeted industries

SMART S

  1.  Fixed deposit of ≥ 600,000 baht with the remaining maturity term ≥ 1 year
  2. Health insurance
  3. Participating in an endorsed incubation, accelerator program or a similar program/or obtaining joint venture with or being endorsed by a relevant Thai government agency
  4. Must set up a company in the targeted industries in Thailand within 1 year with at least 25% ownership or being a board member


Application Procedures

The procedures will take four steps:

  1. The applicant may submit application documents to the One Stop Service Center for Visa and Work Permit (OSS) in Bangkok or the local Royal Thai Embassy/Consulate General
  2. OSS coordinates with other competent Thai government agencies to verify the qualifications; 
  3. Once verification is passed, BOI will issue an endorsement letter;
  4. The applicant can use the endorsement letter to apply for the SMART Visa from OSS or the local Royal Thai Embassy/Consulate General. 

The entire process for the qualification endorsement will take 30 working days from OSS’s receipt of complete documents. 

The applicant may convert a non-immigrant visa to a SMART Visa or renew a SMART Visa at OSS.  The conversion and renewal will follow the same requirements and procedures as those for the first-time application. 

 

Deficiencies

The SMART Visa program is newly introduced to the market and there remain some deficiencies.  First, some qualifications are not clearly defined (e.g. who are “experts” and who are “high-level executives”), leaving broad discretion to the officials, which will cause uncertainty to the applicants when planning their stay in Thailand.  Second, some conditions are too burdensome. For example, the requirement for fixed saving of 600,000 baht for at least 1 year may be unrealistic for startup entrepreneurs who are often short of cash.  Third, the relatively long list of documents for the applications and the lengthy timeframe for processing make deter attempts for application. 

 

Conclusion

The SMART Visa offers a new option for high-quality foreigners to stay and work in Thailand more stably.  Having said that, there is still room for improvement.  In response to our consultation, OSS officials admitted that since the launch of the program in February 2018, no any application has been submitted yet, and that they are considering modifications in order to incentivize applications.  Juslaws will keep close follow-up on the modifications if any and post updates accordingly.

Thailand Japan Young Entrepreneurs (Newsletter March 2016 Part 4)

Newsletter Juslaws & Consult (J&C) – March 2016 Thailand Japan Young Entrepreneurs Networking

On 29th of January one of our Juslaws & Consult Lawyers attended with a Japanese accountant the “ThailandJapan Young Entrepreneurs Networking” hosted by the Board of Trade of Thailand at Sukosol Hotel in Bangkok.

The Seminar was hosted by selected speakers such as Mr. Isara Vongkusolkit, Chairman of The Thai Chamber of Commerce and Board of Trade of Thailand, Dr. Suvit Maesincee, Deputy Minister of Commerce of Thailand and the Chairman of Japan External Trade Organization (JETRO). It was a great occasion to meet personally dozens of Kyoto based companies looking to do business with Thailand. We had the chance to exchange opinions and know more on precision laser welding, elevator and heavy machinery Japanese companies. During 2013, 2014 and 2015 Japan has been the 1 st largest investor in Thailand and during 2015, with 426 Board of Investment BOI applications were approved.

Part 1: Petroleum Concessions in Thailand

Part 2: GTCC Membership

Part 3: Boi Seminar

Part 4:Thailand Japan Young Entrepreneurs Networking

Part 5: PPP and Civil Construction Projects in Thailand

Part 6: 2016 Acquisition of Hotels & Resorts in Thailand and Due Diligence Report

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