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What is the row over the project?

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The decision to approve drilling at a controversial UK oil field has been condemned by environmental campaigners but hailed by supporters as a big step in bolstering the UK’s energy security.

Rosebank, off the Scottish coast, has been given the go ahead by regulators the North Sea Transition Authority.

Prime Minister Rishi Sunak said it was the “right long-term decision” for securing oil supplies in the UK.

But critics said it would harm climate change targets and not reduce bills.

What is Rosebank?

Rosebank is an oil and gas field which lies about 80 miles north-west of Shetland and is one of the largest undeveloped discoveries in UK waters.

It is said to contain up to 300 million barrels of oil and is owned by Norwegian energy giant Equinor and British firm Ithaca Energy.

The approval for drilling comes after the government said it would issue hundreds of new licences for oil and gas exploration in the North Sea.

What will it produce?

The field is expected to start producing oil from 2026.

If drilling does start on time, Rosebank could account for 8% of the UK’s total oil production between 2026 and 2030.

Roughly 245 million barrels will be produced in the first five years of drilling, with the remaining 55 million being extracted between 2032 and 2051.

Though oil is the main product, the site will also produce gas.

About 1,600 jobs are expected to be created during the peak of construction. Long term, the operation will create 450 jobs.

Despite oil and gas output in the North Sea having declined in the last 20 years, the industry still employs more than 200,000 people

Will it mean lower energy bills in the UK?

Oil and gas from UK waters is not necessarily used here – it is sold on global markets.

What Rosebank produces will be sold at world market prices, so the project will not cut energy prices for UK consumers.

The Norwegian state oil company Equinor – which is the majority owner of Rosebank – has confirmed that.

“If the UK needs Rosebank oil, it will go to the UK through open market mechanisms”, said Arne Gurtner, Equinor’s senior vice president for the UK.

Emma Pinchbeck, chief executive of the industry body Energy UK, said the long-term solution for UK bills and energy security “is in reducing our gas demand”, rather then extracting new fossil fuels.

The government’s independent advisers on climate change, the Climate Change Committee (CCC), has said similar in response to the government’s plans to develop the UK’s remaining offshore oil and gas reserves.

Last year, it wrote to the then-chancellor, Kwasi Kwarteng, saying more domestic oil and gas extraction would have “at most, a marginal effect on prices”.

Oil also tends to be sent around the world to be refined – the UK does not have the capacity to refine all its own oil-based products.

Why is the site controversial?

The plan has faced widespread criticism due to its impact on climate change.

Last month 50 MPs and peers from all major parties warned approving the project would be “deeply irresponsible” and risked putting climate targets out of reach and would “nothing” to reduce household bills.

On Tuesday, the International Energy Agency renewed its assertion that no new oil and gas projects are needed if the world is to achieve its climate goals.

Its updated projection suggests fossil fuel demand will fall 80% by 2050 as new solar power and electric cars continue to grow.

Protests have been carried out against Rosebank in the run-up to its approval across the country, with some groups, such as Surfers Against Sewage voicing concerns over the impact of drilling on sea life.

Broadcaster Chris Packham has called the development an “act of war against life on Earth”.

How much tax do oil and gas firms pay?

Firms in the oil and gas sector pay a higher rate of tax than in other industries. Currently, companies such Equinor and Ithaca have to pay 75% on their UK profits until 2028.

This includes a 40% rate of corporation tax – much higher than the standard 25% most UK businesses pay. The government then imposed a 35% windfall tax, called the Energy Profits Levy, on the oil and gas sector in 2022 as firms made huge profits following Russia’s invasion of Ukraine.

However, oil and gas firms can reduce their tax bills by reinvesting their profits in new North Sea energy projects, thanks to a government incentive scheme designed to support the sector.

Equinor and Ithaca have invested $3.8bn (£3.1bn) in the first phase of the Rosebank project and will be able to claim back 91p for every £1 invested, but will ultimately pay a 75% tax rate on the project’s profits.

How will this impact net zero plans?

The UK has committed to reach net zero, which means no longer adding to the total amount of greenhouse gases in the atmosphere, by 2050.

The oil and gas regulator, the North Sea Transition Authority, said it took “net zero considerations into account” in approving the Rosebank project.

The government is adamant that it will meet its climate targets despite the field coming online, pointing out that transitioning to net zero does allow for some oil and gas to be used so long as the emissions are offset.

However, the International Energy Agency (IEA), which advises governments on energy policy, has said big oil and gas projects like Rosebank should not be needed because demand for fossil fuels is forecast to fall towards 2050.

What are politicians saying?

The UK government has welcomed the decision, with Energy Security Secretary Claire Coutinho saying oil and gas are part of the “mix on the path to net zero”.

She has argued it “makes sense” for the UK to use its own oil supplies and will enable the country to have “greater energy independence, making us more secure against tyrants like (Vladimir) Putin”.

Sir Keir Starmer has confirmed that Labour will not revoke the licence for the oil field if it wins the next election. He said that allowing exploration to go ahead would provide “stability” to the economy.

The Liberal Democrats are not expected to make a comment on the licence, but a party source has said that their position remains that Rosebank should not go ahead.

Meanwhile, Scotland’s First Minister Humza Yousaf has said he is “disappointed” by the decision and that he is concerned that the oil extracted will end up overseas.

Green MP Caroline Lucas saying the move was “morally obscene”, and called the move the “greatest act of environmental vandalism in my lifetime”.

— Reports /TrainViral

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Six tonnes of cocaine found in banana shipment

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Sniffer dogs in Ecuador have found 6.23 tonnes of cocaine hidden in a banana shipment, police say.

The dogs alerted their handlers, who seized 5,630 parcels filled with a white substance that later tested positive for cocaine.

The shipment was destined for Germany, officials said, and would have been worth $224m (£173m) had it reached its destination.

Five people had been arrested following the discovery, according to the prosecutor-general’s office.

Police said they had found the massive cocaine haul during a routine inspection of container stored at Posorja deepwater port south-west of Ecuador’s largest city, Guayaquil.

The cocaine parcels had been hidden beneath crates of bananas destined for export.

One of those arrested in connection to the drug discovery was a representative of the export company responsible for the shipment, whom prosecutors said had been present at the inspection and gave officials the names of the four other suspects.

They include the managers of the banana plantation where the cocaine is suspected to have been added to the fruit shipment, as well as the driver who took the container to the port.

Ecuador has become a major transit country for cocaine produced in neighbouring Peru and Colombia, with transnational criminal gangs using Ecuador’s ports to ship the drug to Europe and the US.

Last year, Ecuadorean security forces seized more than 200 tonnes of drugs, most of it cocaine. Only the US and Colombia seized more drugs in 2023.

Gangs have caused a wave of violent crime in Ecuador, leading President Daniel Noboa to declare a state of emergency and deploy tens of thousands of police officers and soldiers in an effort to combat them.

These security forces have stopped large amounts of cocaine from being shipped to Europe.

In January, officers found the largest stash ever to be seized in Ecuador – 22 tonnes of cocaine – buried in a pig farm.

However, extortion, kidnappings and murders remain high in the Andean country.

Reports /Trainviral/

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Thailand expands v-free entry to 93 countries

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Thailand has expanded its visa-free entry scheme to 93 countries and territories as it seeks to revitalize its tourism industry.

Visitors can stay in the South-East Asian nation for up to 60 days under the new scheme that took effect on Monday,

Previously, passport holders from 57 countries were allowed to enter without a visa.

Tourism is a key pillar of the Thai economy, but it has not fully recovered from the pandemic.

Thailand recorded 17.5 million foreign tourists arrivals in the first six months of 2024, up 35% from the same period last year, according to official data. However, the numbers pale in comparison to pre-pandemic levels.

Most of the visitors were from China, Malaysia and India.

Tourism revenue during the same period came in at 858 billion baht ($23.6bn; £18.3bn), less than a quarter of the government’s target.

Millions of tourists flock to Thailand every year for its golden temples, white sand beaches, picturesque mountains and vibrant night life.

The revised visa-free rules are part of a broader plan to boost tourism.

Also on Monday, Thailand introduced a new five-year visa for remote workers, that allows holders to stay for up to 180 days each year.

The country will also allow visiting students, who earn a bachelor’s degree or higher in Thailand, to stay for one year after graduation to find a job or travel.

In June, authorities announced an extension of a waiver on hoteliers’ operating fees for two more years. They also scrapped a proposed tourism fee for visitors flying into the country.

However some stakeholders are concerned that the country’s infrastructure may not be able to keep up with travellers’ demands.

“If more people are coming, it means the country as a whole… has to prepare our resources to welcome them,” said Kantapong Thananuangroj, president of the Thai Tourism Promotion Association.

“If not, [the tourists] may not be impressed with the experience they have in Thailand and we may not get a second chance,” he said.

Chamnan Srisawat, president of the Tourism Council of Thailand, said he foresees a “bottleneck in air traffic as the incoming flights may not increase in time to catch up with the demands of the travellers”.

Some people have also raised safety concerns after rumours that tourists have been kidnapped and sent across the border to work in scam centres in Myanmar or Cambodia.

fatal shooting in Bangkok’s most famous shopping mall last year has also caused concern among visitors.

Reports /Trainviral/

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Royal Mail will deliver letters forever

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The prospective new owner of Royal Mail has said he will not walk away from the requirement to deliver letters throughout the UK six days a week, as long as he is running the service.

“As long as I’m alive, I completely exclude this,” Czech billionaire Daniel Kretinsky told the BBC.

Mr Kretinsky has had a £3.6bn offer for Royal Mail accepted by its board.

Shareholders are expected to approve the deal in the coming months, but the government also has a say over whether it goes ahead.

Currently the Universal Service Obligation (USO) requires Royal Mail to deliver letters six days a week throughout the country for the same price. But questions have been raised over whether the service could be reduced in the future.

In an exclusive interview with the BBC, Mr Kretinsky also said he would be willing to share profits with employees, if given the go-ahead to buy the group.

However, he appeared to reject the idea of employees having a stake in Royal Mail, which unions have called for in exchange for their support.

The Royal Mail board agreed a £3.6bn takeover offer from Mr Kretinsky in May for the 500-year-old organisation, which employs more than 150,000 people. Including assumed debts, the offer is worth £5bn.

But because Royal Mail is a nationally important company, the government has the power to scrutinise and potentially block the deal.

As well as keeping the new government on side, Mr Kretinsky also faces the task of convincing postal unions that the proposed deal will benefit employees.

The USO is a potential sticking point for both the government and unions.

Royal Mail is required by law to deliver letters six days a week and parcels five days a week to every address in the UK for a fixed price.

How well this has actually been working in practice is a different matter. Ten years ago, 92% of first class post arrived on time. By the end of last year it was down to 74%, according to the regulator Ofcom.

Last year the regulator fined Royal Mail £5.6m for failing to meet its delivery targets.

Royal Mail has been pushing for this obligation to be watered down. It wants to cut second class letter deliveries to every other weekday, saying this will save £300m, and lead to “fewer than 1,000” voluntary redundancies.

‘Unconditional commitment’

Mr Kretinsky has committed in writing to honouring the USO, but only for five years.

And after that, in theory, the new owners could just walk away from it.

However, Mr Kretinsky told the BBC: “As long as I’m alive, I completely exclude this, and I’m sure that anybody that would be my successor would absolutely understand this.

“I say this as an absolutely clear, unconditional commitment: Royal Mail is going to be the provider of Universal Service Obligation in the UK, I would say forever, as long as the service is going to be needed, and as long as we are going to be around.”

Mr Kretinsky added that the written five-year commitment was “the longest commitment that has ever been offered in a situation like this”.

Woman's hand posting a letter into a red post box

Another potential stumbling block for the deal, however, is how the company will be structured.

Unions would like to see the company renationalised, but Dave Ward, general secretary of the Communication Workers Union (CWU), told the BBC that would be “difficult in the current political and economic environment”.

Instead, what the CWU is pushing for is “a different model of ownership” – that is, where the employees part-own the business.

To get its support for the takeover, the union wants employees to share ownership of the company, along with other concessions including board representation for workers.

It says profit sharing is “not going to be enough to deliver our support and the support of the workforce”.

If the union doesn’t get what it wants, it won’t rule out industrial action, Mr Ward said. Its members went on strike in 2022 and 2023.

Although Mr Kretinsky said he is “very open” to profit sharing, he is not in favour of shared ownership.

“I don’t think the ownership stake is the right model,” he said. “The logic is: share of profit, yes, [but an] ownership structure creates a lot of complexity.

“For instance, what happens if the employee leaves? He has shares, he is leaving, he is not working for the company, he [still] needs remunerating.”

Mr Kretinsky said he didn’t want to create “some anonymous structure” but instead “remunerate the people who are working for the company, and creating value for the company”.

The union is also concerned about job losses and changes to the terms and conditions of postal workers’ contracts.

Mr Kretinsky has guaranteed no compulsory redundancies or changes in terms and conditions but only until 2025.

“If we are more successful, and we have more parcels to be delivered, we need not less people, but we need more people,” he said. “So really, job cuts are not part of our plan at all.”

He said if the management, union and employees work together, “we will be successful”.

Another concern is the potential break-up of the business.

The profit for Royal Mail’s parent company last year was entirely generated by its German and Canadian logistics and parcels business, GLS. Royal Mail itself made a loss.

Mr Kretinsky has promised not to split off GLS or load the parent company with excessive debt, although borrowings will rise if the deal goes through.

But he has a way to go to convince the CWU.

“I can’t think of any other country in the world that would just just hand over its entire postal service to an overseas equity investor,” Mr Ward of the CWU said.

However, Mr Kretinsky said that the postal unions “do understand that we are on the same ship, and that we need this ship to be successful, and that if we are there, we don’t have any real problems to deal with, because the sky is blue, and it’s blue for everybody.”

The union cannot stop this deal but the government can block it under the National Security and Investment Act.

Business Secretary Jonathan Reynolds has said he will scrutinise the assurances and guarantees given and called on Mr Kretinsky to work constructively with the unions.

Mr Kretinsky may say that he and the unions are ultimately on the same ship but, as things stand, they are not on the same page.

Who is Daniel Kretinsky?

Daniel Kretinsky started his career as a lawyer in his hometown of Brno, before moving to Prague.

He then made serious money in Central and Eastern European energy interests.

This includes Eustream, which transports Russian gas via pipelines that run through Ukraine, the Czech Republic and Slovakia.

He then diversified into other investments, including an almost 10% stake in UK supermarket chain Sainsbury’s and a 27% share in Premier League club West Ham United.

The Czech businessman is worth about £6bn, according to reports.

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