TOP pushing for resolution of dispute

Thai Oil Plc (TOP), the country’s largest oil refinery by capacity, is requesting the parent firms of construction companies working on the Clean Fuel Project (CFP) to settle the months-long delay on wage payments to construction workers, which led to protests at the refinery in Chon Buri.
TOP hired Unincorporated Joint Venture (UJV), comprising Petrofac South East Asia Pte Ltd, Saipem Singapore Pte Ltd and Samsung E&A (Thailand) Co Ltd, to work on the project, located in Chon Buri’s Si Racha district.
UJV used subcontractors to carry out work on the project, but failed to pay their workers, even though TOP has been paying the wages to UJV, according to Bandhit Thamprajamchit, chief executive and president of TOP.
TOP sent an inquiry letter to UJV and its parent firms, requesting a prompt solution to the problem.
“UJV has assured us it will fulfill its payment obligations to the subcontractors,” said Mr Bandhit in a statement submitted to the Stock Exchange of Thailand yesterday.
If UJV is experiencing liquidity issues, preventing them from making the outstanding payments, the parent companies should provide financial assistance to UJV, he said.
According to TOP, the pandemic hampered the management and construction efforts of UJV from 2020 to 2022.
In 2021, UJV initiated negotiations with TOP for an increased budget under the engineering, procurement and construction (EPC) contract and sought an extension to the construction period.
TOP approved the amendment of the EPC contract that includes an additional budget of US$550 million.
The subcontractors has staged protests since mid-July this year calling for their unpaid wages. They joined forces and set up the Federation of Subcontractors of TOP Refinery, CFP Project, Si Racha.
The CFP, which is scheduled to commence operations in 2025, is aimed at increasing the oil refinery’s capacity and producing high-value oil products, including diesel and jet fuel. It will produce diesel that meets Euro 5 environmental emission standards.