Thai Oil may invest $2 bn in region under 5-yr plan

He said yesterday that the company had set three scenarios for its rolling five-year investment plan. In the base-case scenario, it will spend $1.3 billion on refinery infrastructure and general production improvements. The medium-case scenario calls for a budget of $1.5 billion in case Thai Oil along with PTT Group has an opportunity to invest in refineries and downstream industries in this region. If the company can win M&A deals, it will be able to invest as much as $2 billion.
Surong said Thai Oil and PTT Group were looking at investment possibilities in Indonesia, Myanmar, Vietnam and China.
In Indonesia, Thai Oil is considering investment in specialised products such as wax. The investment would likely to be made in cooperation with Pertamina, that country’s largest energy company.
In Myanmar, investment opportunities are being explored under PTT Group, which has set up a task force for that purpose. Investment in Myanmar may be in the form of a refinery and downstream business such as retail.
Thai Oil’s business in Vietnam and Indonesia will be focused on marketing, not investing in new facilities. It is marketing solvents in Vietnam and will continue strengthening its business there.
The opportunity for the company in China is downstream, as it is looking to market lubricants in that country.
“Refining from now on will be a small but beautiful business. We have to look for other refinery-related businesses, particularly marketing, which is downstream,” Surong said.
He added that the company was also looking for opportunities to acquire new assets, particularly in Europe, which now has liquidity problems. Thai Oil’s target in Europe is family businesses, both mid- and downstream. It needs European partners to expand its business in this region.