Subcontractors Demand Overdue Payments from UJV – Samsung, Petrofac, and Saipem"
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Subcontractors Demand Overdue Payments from UJV – Samsung, Petrofac, and Saipem"

The Federation of Subcontractors of TOP Refinery held a press conference urging UJV – Samsung, Petrofac, and Saipem to fulfil payment obligations for the Clean Fuel Project or face protests at Thaioil's refinery.

Subcontractors Demand Overdue Payments from UJV – Samsung, Petrofac, and Saipem"

On 15 October 2024, at 10:00 hrs., the Federation of Subcontractors of TOP Refinery, CFP Project, Sriracha, consisting of 16 companies which are subcontractors of the Unincorporated Joint Venture of Samsung E&A (Thailand) Co., Ltd. (Samsung), Petrofac South East Asia Pte. Ltd. (Petrofac), and Saipem Singapore Pte. Ltd. (Saipem) (collectively, the UJV – Samsung, Petrofac, and Saipem), held a press conference at Ballroom 1 and Ballroom 2, 6th floor of Holiday Inn & Suites Siracha Laemchabang Hotel, Chonburi Province. The press conference was conducted to demand overdue payments from UJV – Samsung, Petrofac, and Saipem, which is the main contractor for the Clean Fuel Project (CFP) for Thai Oil Public Company Limited (“Thaioil”). The Federation announced that, if no clear solution is provided by UJV – Samsung, Petrofac, and Saipem, the executives and employees of all 16 companies will gather in front of Thaioil’s refinery on 18 October 2024. 

Thaioil wishes to clarify that it has duly and fully paid UJV – Samsung, Petrofac and Saipem, which is the main contractor for the construction of the Clean Fuel Project (CFP), in accordance with the terms of the Engineering, Procurement, and Construction (EPC) contract for the Clean Fuel Project (CFP), executed between Thaioil and UJV – Samsung, Petrofac and Saipem. Despite this, the Federation of Subcontractors of TOP Refinery, CFP Project, Sriracha stated during the press conference that UJV – Samsung, Petrofac and Saipem has not made payments to the subcontractors per the terms of the respective subcontracts between the subcontractors and UJV – Samsung, Petrofac and Saipem. Therefore, the legal obligation to pay the overdue amounts to the subcontractors rests directly with UJV – Samsung, Petrofac and Saipem. The subcontractors understood and were well aware of this fact. 

In this regard, Thaioil has consistently sent letters to UJV – Samsung, Petrofac, and Saipem, as well as their parent companies, to inquire about the measures to address the unpaid subcontractors and plans for making the overdue payments. UJV – Samsung, Petrofac and Saipem has assured Thaioil that it will be fulfilling its payment obligations to the subcontractors in accordance with the terms of the relevant subcontracts. UJV – Samsung, Petrofac and Saipem also informed Thaioil that Thaioil should not intervene in matters relating to the subcontractors, as Thaioil is not a party to the subcontracts and that UJV – Samsung, Petrofac and Saipem has been acting and handling subcontractors in accordance with the terms of the relevant subcontracts. 

Thaioil highlights that it has consistently adhered to the principles of good governance and is committed to conducting business transparently with all stakeholders. Thaioil acknowledges the challenges faced by the subcontractors and will use full effort to engage with UJV – Samsung, Petrofac, and Saipem to follow up on the situation and inquire about measures being taken to address and alleviate the subcontractors' difficulties as soon as possible. In the event that UJV – Samsung, Petrofac, and Saipem is unable to resolve the issues with the subcontractors and fails to perform its obligations under the subcontracts, resulting in a gathering of the subcontractors, Thaioil has prepared measures and personnel to ensure security at Thaioil’s refinery. Thaioil is also cooperating with government agencies to implement emergency plans and deploy personnel for 24-hour surveillance. These measures aim to mitigate any potential impacts and damages to Thaioil from such gathering, ensure that the gathering remains orderly and safe, and minimise impact on the surrounding community and Thaioil’s customers who are scheduled for product deliveries. 

For more information please contact: 

Thai Oil Public Company Limited 

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