Thai Oil Public Company Limited (TOP) has formally contested claims made by Samsung and Saipem regarding the Clean Fuel Project (CFP), as the two contractors initiated arbitration proceedings against the company at the Singapore International Arbitration Centre (SIAC). In a statement released on March 26, 2025, TOP emphasized its strict adherence to the terms of the Engineering, Procurement, and Construction (EPC) contract, asserting that it has consistently prioritized the interests of both the company and its shareholders.
The arbitration process stems from a dispute over the EPC contract, particularly concerning TOP's rights to enforce guarantees related to the joint venture amounting to approximately $358 million. Samsung and Saipem, the contractors involved in the CFP project, have alleged that TOP's actions to enforce these guarantees were premature and unjustified. They have also filed for unspecified damages, which they have yet to detail.
According to the report from the Stock Exchange of Thailand, TOP has taken proactive steps to safeguard its position and mitigate potential damages by leveraging its rights in dispute resolution. The company aims to ensure fair compensation for itself and its shareholders, reinforcing its commitment to transparency and accountability throughout the arbitration process.
On March 25, 2025, TOP reported its successful acquisition of additional contractor appointments, further solidifying its position in managing the project. The Clean Fuel Project, which has been a significant undertaking for the company since the EPC contract was awarded on October 19, 2018, involves a joint venture with PSS Netherlands B.V. and Petrofac South East Asia Pte, LTD.
TOP's management reiterated that it has acted in compliance with the EPC contract, stating, "We have followed the terms of our agreement meticulously and will continue to do so, prioritizing the best interests of our company and shareholders." This statement reflects the company's confidence in its legal standing and operational integrity as it navigates the complexities of international arbitration.
The arbitration proceedings are expected to unfold over the coming months, with both parties preparing their cases for presentation at the SIAC. The outcome of this dispute could have significant implications for the future of the CFP project and for TOP's operational strategy moving forward.
As the situation develops, TOP has assured its stakeholders that it will keep them informed about the project's progress and any potential impacts arising from the arbitration. The company remains committed to maintaining its high standards of corporate governance, focusing on creating value for its shareholders while protecting its legal rights.
In light of these developments, analysts are closely watching the arbitration's trajectory, as it may set precedents for future contracts and disputes in the energy sector. The Clean Fuel Project is not only crucial for TOP but also represents a significant investment in sustainable energy solutions, making the resolution of this dispute even more critical.
In summary, Thai Oil's firm stance against the claims made by Samsung and Saipem highlights its commitment to upholding contractual obligations while ensuring that the interests of its shareholders are protected. As the arbitration process unfolds, the company is poised to navigate the challenges ahead with a focus on transparency and accountability.
