Bangkok--Dec 1--PTT
Mr. Prasert Bunsumpun, President of PTT Public Company Limited (PTT) and Mr. Michael Noll, Representative of Shell International Holding Limited (Shell), has officially entered into an agreement on the transfer of 64% equity share or 243 million shares in Rayong Refinery Company Limited (RRC), making PTT the sole owner of RRC.
Earlier, PTT and Shell reached the share purchase agreement on the 64% shares in RRC, a Hydrocracking Refinery with the refining capacity of 145,000 barrels per day, making PTT the sole shareholder of RRC. Upon the completion of the deal, PTT has pursued the debt restructuring process, under which PTT has provided financial support of not more than US$250 million in the form of subordinated debt and/or equity. With the successful debt restructuring, the refinery firm would have the remaining debt of not over US$ 600-US$ 700 million, resulting in a good cash flow position to continue with its operation.
As the sole owner of RRC, PTT can stabilize its long-term supply together with synergy among PTT’s refinery subsidiaries, including Thai Oil Public Company Limited, which is PTT’s flagship refinery. This will enable PTT to efficiently manage its oil refining capacity to match both domestic and regional demand as well as create balance of demand and supply for Thailand’s petroleum market. The debt restructuring would concurrently enable RRC to continue with its business and grasp the upward trend of gross refining margin due to domestic and regional demand growth.
PTT currently invests in oil refining business through its 4 subsidiaries i.e. Thai Oil Public Company Limited (49.54%), RRC (100%), Star Petroleum Refining Company Limited (36%), and Bangchak Petroleum Public Company Limited (7.91%). With the current shareholding structure, PTT’s combined refining capacity totals 317,480 barrels per day or 31% of Thailand’s total refining capacity.
Corporate Public Relations Department
PTT Public Company Limited End.