Thai Oil Prepares for Subcontractor Gathering Amid Payment Dispute


Bangkok: Thai Oil Public Company Limited is making extensive preparations for a potential gathering of subcontractors at its refinery on October 18, as it aims to ensure operations continue smoothly and community impacts are minimized. The company has confirmed full payment to its main contractor and is actively coordinating to settle dues with the subcontractors according to contractual agreements.

According to Thai News Agency, the situation involves 16 subcontractors associated with the joint venture of Samsung Engineering and Construction (Thailand) (“Samsung”), Petrofac South East Asia Pte (“Petrofac”), and Saipem Singapore Pte. (“Saipem”), collectively known as UJV – Samsung, Petrofac, and Saipem. These subcontractors, organized under the TOP Refinery Contractors Federation, have threatened to assemble in front of the Thai Oil refinery to protest unpaid dues. They claim that despite Thai Oil’s payment to the main contractors, the funds have not been passed down, affecting approximately 20,000 workers.

T
hai Oil has responded by stating their adherence to the terms specified in the Engineering, Procurement, and Construction (EPC) contract, which confirms full payment to UJV – Samsung, Petrofac, and Saipem. The responsibility to settle payments with the subcontractors thus falls on these main contractors. In response to the impending gathering, Thai Oil has communicated with UJV – Samsung, Petrofac, and Saipem, urging them to resolve the payment issues promptly. The main contractors have reassured that they will continue to settle outstanding payments as per the subcontractor agreements.

Furthermore, Thai Oil has outlined its commitment to maintaining refinery safety and community well-being by implementing a comprehensive care plan. This includes coordinating with local government agencies to prepare for any emergencies and ensuring that the gathering, if it occurs, remains peaceful and orderly.