Thai Oil Public Company Limited (SET: TOP) has announced that it has enforced security provided under the engineering, procurement and construction (EPC) contract between the Company and the Consortium in an amount of approximately THB 12,339 million.
The reference was made after several reports this afternoon indicated that Samsung E&A, one of the main contractors in UJV Consortium for the development of the Clean Fuel Project (CFP) disclosed in a filing that it has committed to the bond call from Thai Oil at the amount of 88 billion Korean won or approximately THB 2,102 million.
Thai Oil stated in a filing to the Thai Stock Exchange late Friday that it has enforced security provided under the engineering, procurement and construction (EPC) contract between the Company and the Consortium of PSS Netherlands B.V. (Offshore Contractor), and an unincorporated joint venture of Samsung E&A (Thailand) Co., Ltd., Petrofac South East Asia Pte. Ltd., and Saipem Singapore Pte. Ltd. (Onshore Contractor), in accordance with the contract and in the interest of the company and its shareholders, in an amount of approximately THB 12,339 million, approximately equivalent to USD 358 million.
The CFP Project investment was approved on August 27, 2018, with an estimated value of USD 4,825 million or THB 160,279 million. Construction completion was initially expected by the first quarter of 2023, with contracts awarded to notable main contractors, comprising Samsung E&A (Thailand) Co., Ltd., Petrofac South East Asia Pte. Ltd. and Saipem Singapore Pte. Ltd. in a joint venture known as UJV.
The construction was nearly complete but faced blockage as subcontractors went on a strike, citing overdue payment from their main contractors, which is UJV.
Thai Oil disclosed in October 2024 that the Consortium provided performance bonds amounting to 10% of the total contract value as security to secure its performance of the EPC contract and as security for potential damages.
