On March 26, 2025, Thai Oil Public Company Limited (TOP) issued a statement clarifying its position regarding the ongoing arbitration initiated by Samsung E&A (Thailand) Co., Ltd. and Saipem Singapore Pte. Ltd. concerning the Clean Fuel Project (CFP). The company affirms its strict adherence to the terms of the Engineering, Procurement, and Construction (EPC) contract and asserts that the allegations against it are unfounded.
The arbitration process commenced on February 19, 2025, at the Singapore International Arbitration Centre (SIAC) after Samsung and Saipem, contractors for the CFP, raised a dispute claiming improper execution of a performance guarantee amounting to approximately $358 million. They allege that Thai Oil exercised its rights to enforce this guarantee prematurely.
In response to these claims, Thai Oil reported, "The company affirms that it has strictly adhered to the EPC contract terms throughout and will continue to do so, considering the best interests of the company and shareholders." This statement echoes the company's long-standing commitment to compliance and stakeholder integrity.
Further addressing the situation, Thai Oil revealed that it submitted a counterclaim against Samsung and Saipem on March 25, 2025, arguing that the allegations lack merit and reinforcing its position in the arbitration process. The company maintains that it is well-prepared for the arbitration, as detailed in its statement to the Stock Exchange of Thailand.
"The company has prepared for the arbitration process and is ready to continue with this case," the press release reads. This preparation reflects Thai Oil's proactive approach in handling the legal proceedings and its focus on maintaining operational continuity.
The Clean Fuel Project, highlighted by Thai Oil's ongoing contracts, has engaged various international contractors alongside Samsung and Saipem, including PSS Netherlands B.V. and Petrofac South East Asia Pte. Ltd. The original EPC contract was established on October 19, 2018, which underpins the current legal implications.
Ultimately, Thai Oil seeks to reassure its shareholders and the larger investment community that the arbitration process will not interfere with the CFP's implementation. The firm is adamant about its commitment to sound corporate governance, emphasizing its dedication to protecting the rights and interests of its stakeholders.
As of March 26, 2025, Thai Oil's stock is trading at 25.75 baht per share, reflecting a rise of 1.00 baht or 3.74%, indicating a resilient market response amid the arbitration backdrop. The company, as communicated publicly, believes that it has robust grounds for its case against the claims made by Samsung and Saipem.
The impact of such international disputes can often raise concerns among investors, but Thai Oil's proactive communication may help to quell uncertainties. With their commitment to transparency and the integrity of the arbitration process, Thai Oil demonstrates a strong stance aimed at safeguarding its operational pursuits and protecting shareholder interests.
