Asian countries are offering better oil exploration concessions to avert damaging shortfalls due to last years oil price slump the United Nations said. The Bangkok-based U.N. Economic and Social Commission for Asia and the Pacific said in its annual report that the price fall substantially cut exploration by foreign oil firms which found it unprofitable to maintain investments in the region. Oil production investment in Indonesia fell to about 2.8 billion dlrs in 1985 from 3.2 billion in 1983 and was estimated to have declined six pct last year. There were 11 wells drilled in Thailand in 1986 against 64 in 1985. The report said &lt;Thai Shell Exploration and Production Co Ltd> a unit of the &lt;Royal Dutch/Shell Group> announced a 30 pct cut in exploration and production spending last year. To counter declining output India and Malaysia reduced petroleum sharing demands while Indonesia cut taxes. Nepal offered a guaranteed income share of up to 87.5 pct to cover exploration costs while Thailand began decreasing its 12.5 pct royalty payments. The big losers were major regional exporters such as Indonesia Brunei China Malaysia and Iran. Their aggregate oil income fell an estimated 20 billion dlrs in 1986 from 40 billion the previous year. Indonesias export earnings fell by nearly half in 1986 from 11.6 billion dlrs in 1985 the U.N. Report said. Iran also lost about six billion dlrs Brunei 3.8 billion China three billion and Malaysia 0.8 billion. However Asian importers saved between eight and nine billion dlrs during 1985 and 1986 which considerably eased their balance of payments. South Korea the Philippines India Thailand and Pakistan were major beneficiaries with Thailand and Pakistan respectively saving about 875 mln and 435 mln dlrs last year.
ASIA TRYING TO FOSTER OIL EXPLORATION, SAYS U.N.