Mrs. Sudchinda Sethakulvichai, Director of Sriracha Construction Public Company Limited (SET: SRICHA), revealed that the company received a contract from Thai Oil Public Company Limited (SET: TOP) to operate in Clean Fuel Projects (CFP)’s brown and greenfield site worth THB 7.8 billion. Its scope of work includes steel structure works, piping works, insulation works, fireproof works, with project duration of 19 months. The commencement date started this month.
CFP is one of TOP’s major investments, valued at about USD 5 billion, or THB 170 billion (excluding the additional fund of THB 62 billion). The company’s board of directors appointed Wood Public Company Limited for Procurement & Construction Management (EPCM) works, overseeing the entire CFP.
A construction industry’s source revealed to Kaohoon that TOP also selected Stecon Group Public Company Limited (SET: STECON), one of the nation’s largest construction companies, to operate in the profit, valued at THB 7 billion.
Furthermore, there is a speculation that CAZ (Thailand) PCL (mai: CAZ), Italian-Thai Development PCL (SET: ITD), and TRC Construction PCL (SET: TRC), the companies that signed a contract with UJV Joint Venture Group, which include Samsung, Petrofac, and Saipem, will continue involving in the project as well.
Previously, TOP canceled the contract with UJV after the joint venture failed to pay its subcontractors, causing the project to be delayed. UJV then removed the CAZ, SRICHA, STECON, CAZ, and TRC from the CFP. TOP expects such issues will not recur.
Regarding the UJV’s remaining payment to the entire subcontractors, it is expected that legal action will be taken. Currently, STECON has filed a lawsuit with an international arbitration. The new contractor will not be involved in the matter. There is also a speculation that 70 -80% of previous subcontractors will return to work on the project.
On April 24, 2025, TOP canceled the EPC contract after the contractor failed to follow the agreement, but confirmed that the matter will not affect the operation of CFP, which is expected to be finished within 3Q28. The company has hired professional and experienced advisors to assist in managing the engineering, procurement, and construction.
Mrs. Wanida Boonpiraks, Executive Vice President of TOP’s Finance and Accounting, stated that once the CFP is complete, the company’s manufacturing rate per day would increase from the current 275,000 to 400,000 barrels, a 45% increase. Furthermore, TOP would be able to use more heavy crude oil that is cheaper, increase the production of high-margin diesel and jet fuel, and cancel the production of low-margin fuel oil.
