A coalition of 28 subcontractor companies involved in the Clean Fuel Project (CFP) at Thai Oil refinery, Sriracha, Chonburi, jointly vowed to cease all operations unless all outstanding debts from the main contractor, UJV, are settled.
The contractors are burdened with debt totaling over six billion baht for the past eight months that their contractor UJV, consisting of Samsung E&A (Thailand) Co., Ltd. (Samsung), Petrofac South East Asia Pte. Ltd. (Petrofac), and Saipem Singapore Pte. Ltd. (Saipem), owed. UJV is a main contractor for Thai Oil Public Company Limited (SET: TOP) in the construction of its mega Clean Fuel Project (CFP).
This decisive resolution was made during a meeting at the Holiday Inn Suites’ Ballroom in Sriracha, Chonburi, attended by nearly 50 representatives of the 28 companies.
Chatmongkol Khemapirat, Assistant Managing Director of Sriracha Construction Co., Ltd., highlighted the dire financial situation, stating that some contractors have already faced bankruptcy, while others face significant cash flow issues, struggling to pay workers and suppliers.
“In light of these challenges,” said Khemaphirat, “we unanimously agreed to halt further involvement in the CFP unless all our outstanding debts are addressed. This action serves as a plea to the project owner to bind the main contractors to fulfill their financial obligations to all related subcontractors within the contracted time frame, without exceptions.”
The contractors are also seeking a meeting with Thai Oil’s management to submit a formal request and follow up on the progress in resolving these issues, which currently awaits a response from Thai Oil.
