Thai Oil Public Company Limited (SET: TOP) has announced the clarification on arbitration proceedings relating to the Clean Fuel Project via the Stock Exchange of Thailand (SET), with the details as follows:
Thai Oil (the “Company”) disclosed that on 19 February 2025, Samsung E&A (Thailand) Co., Ltd. and Saipem Singapore Pte. Ltd. (collectively the “Claimants”) initiated arbitration proceedings against the Company at the Singapore International Arbitration Centre (the “Arbitration”).
The Claimants are members of the consortium of PSS Netherlands B.V. and an unincorporated joint venture of the Claimants and Petrofac South East Asia Pte. Ltd. (the “Consortium”), with which the Company entered into an engineering, procurement and construction contract (EPC) dated 19 October 2018 as amended (the “EPC Contract”) in respect of the Clean Fuel Project (the “CFP Project”).
The Arbitration pertains to a dispute between the Claimants and the Company in connection with the EPC Contract, in particular the Company’s enforcement of security provided by the Consortium in an amount of approximately USD358 million, as previously disclosed by the Company via the Stock Exchange of Thailand on 24 January 2025. The Claimants allege that the Company’s exercise of its rights under the security was premature and improper and claim damages against the Company for losses which are yet to be particularized.
The Company affirms that it has and will continue to strictly comply with the terms of the EPC Contract, taking into consideration the best interests of the Company and the shareholders. The Company considers that the Claimants’ claims are without merit and, on 25 March 2025, filed its response to defend such claims and bring counterclaims against the Claimants in the Arbitration.
The Company assures its shareholders and stakeholders that the Arbitration will not affect the implementation of the CFP Project of the Company. The Company has prepared for the Arbitration and is ready to navigate through this development. The Company remains committed to conducting its business in accordance with the principle of good corporate governance with the aim to create benefits for the Company and its shareholders, while protecting the legal interests of the Company.
The Company will make further announcements regarding any significant developments on the Arbitration in accordance with its legal obligations.
