Bangkok: Thai Oil Public Company Limited has asserted that the procurement process for hiring the main contractor for its Clean Energy Project (CFP) was conducted transparently. The company remains committed to completing the CFP swiftly and is advocating for UJV – Samsung, Petrofac, and Saipem to settle outstanding payments to subcontractors.
According to Thai News Agency, the CFP aims to expand the oil refining capacity using advanced technology to bolster Thailand’s energy security. Initiated in 2014, the project required a specialized workforce, leading to the selection of Petrofac International, Samsung Engineering, and Saipem SPA as the main contractors through a transparent bidding process in 2016. Despite a gathering by a federation in Sriracha District affecting operations, Thai Oil clarified that the project has not been postponed indefinitely.
Thai Oil has fulfilled its compensation obligations to the main contractors under the Engineering, Procurement, and Construction (EPC) contract. However, t
he main contractors have not yet disbursed outstanding payments to subcontractors. Thai Oil has attempted to facilitate these payments by suggesting direct compensation deductions, but the main contractors have not agreed, citing contractual limitations.
The company remains committed to corporate governance principles and emphasizes its role in supporting subcontractors financially, while respecting contractual boundaries. Thai Oil aims to complete the CFP, which will increase refining capacity from 275,000 to 400,000 barrels per day, with an investment of approximately $4.825 billion, by 2025.
Market analysts, including Mr. Prin Nikornkittikosol of Yuanta Securities, have noted a decline in Thai Oil’s share price due to concerns surrounding the CFP. Despite these challenges, Thai Oil has not announced any project delays and continues to pursue solutions to ensure subcontractors are compensated. Analysts also forecast a net loss for the company in the third quarter, attributed to volatile crude oil prices a
nd declining refining margins.