Bangkok: Thai Oil has accelerated efforts to resolve issues surrounding its Clean Fuel Project (CFP), with expectations for clarity by early 2025, despite acknowledging a postponement in operations. The company has intensified negotiations with its main contractor, UJV, to address these challenges and has announced four strategic initiatives aimed at fostering sustainable growth by 2025.
According to Thai News Agency, Mr. Bandit Thammaprajamjit, the Chief Executive Officer and Managing Director of Thai Oil (TOP), stated that the CFP’s first milestone was achieved with the test run of the diesel sulfur removal unit (HDS-4) in February 2024. This development supports the production of Euro 5 standard diesel in alignment with government policies for environmentally friendly oil usage. Other CFP projects are in different stages of construction, with the fourth crude oil distillation unit (CDU-4) leading in progress. Meanwhile, the Residue Hydrocracking Unit (RHCU) is expediting machinery installation and pipeli
ne connections despite spatial constraints slowing progress.
Mr. Bandit expressed concerns over the current situation where subcontractors of UJV-Samsung E and A (Thailand) Co., Ltd., Petrofac South East Asia Pte. Ltd., and Saipem Singapore Pte. Ltd. have threatened to halt construction unless outstanding debts are settled. Thai Oil has been actively urging these companies and their parent firms to fulfill their contractual compensation obligations to subcontractors. The company anticipates resolving all issues by early 2025, ensuring the CFP does not face indefinite delays.
He reiterated that the non-compliance of UJV with contractual obligations has affected both Thai Oil and its subcontractors. The primary objective remains the swift completion of the CFP, considering project timelines, costs, and environmental impacts, with detailed guidelines for successful project management in place.
Despite economic volatility, Mr. Bandit highlighted positive factors for the energy and refinery sectors in 2025, suc
h as expected increases in aviation fuel demand linked to tourism growth in Asia and a recovery in refining margins. Thai Oil has outlined four strategic goals for 2025:
1. Strengthen the refinery business by accelerating the CFP and leveraging new technologies for productivity improvement.
2. Extend the value chain by developing high-value products and expanding market reach in countries like Vietnam, Indonesia, and India.
3. Enhance financial strength through effective cost management and risk mitigation to maintain financial liquidity and investment-grade credit ratings.
4. Drive business sustainability by prioritizing environmental, social, and corporate governance (ESG) considerations, enhancing energy efficiency, and contributing to community development through educational, employment, and healthcare initiatives.
The company remains committed to navigating the challenges and opportunities ahead, aiming to position itself strongly within the global energy landscape.