Thai Oil (TOP), PTT’s flagship refinery business, is ready to expand to Asean countries, chief executive officer Surong Bulakul said.
He said TOP and the PTT group had conducted a joint study on possible investment destinations in Asean, especially Burma, Indonesia, Vietnam and Cambodia. TOP will focus its investment on the refinery business in these countries.
The study focuses on upstream petroleum investment, natural-gas and oil pipelines, gas-separation plants, refineries, and the petrochemical business.
He added that there was potential for investment in Burma, which is opening up its economy. TOP is also interested in investing in refinery-related businesses in Vietnam when there are favourable opportunities.
He forecast that the Dubai crude oil price this year would be in the range of US$ 105-$ 106 per barrel, almost the same as last year, despite global economic problems. TOP has devised a risk-management plan to deal with the volatile global oil price.
As part of its five-year investment plan, TOP will spend $ 1 billion (Bt31 billion), part of which would be poured into the expansion of its seaport capacity to enable transport of 50,000 tonnes per year, up from the present 5,000 tonnes per year. It will also expand its paraxylene production capacity by 100,000 tonnes per year from the present 400,000 tonnes.
The expansion is expected to be completed in the third quarter.
It will also invest in setting up two small power plants, each with capacity of 120 megawatts, and costing Bt10 billion per plant. They will sell 90MW to the Electricity Generating Authority of Thailand, starting in 2014 or 2015.
Energy expert Manoon Siriwan said he expected the average global oil price this year to be $ 100-$ 115 per barrel but it could jump to $ 200 if Iran closes the Strait of Hormuz, a key oil-transport route. But he said Iran was unlikely to do so because it would affect its oil exports, too.
On the other hand, the economic problems in Europe and the United States could bring the oil price down to $ 75-$ 80. One should keep a close watch if the Western economies are able to solve their problems within the first half of the year.
He believes that the domestic oil price could rise to Bt5.30 per litre after the government’s planned gradual imposition of the diesel excise.
Source: http://www.nationmultimedia.com/business/Thai-Oil-scouting-for-investment-30175069.html
Pattaya today newspaper