Thai PTT seeks potential partners amid business strategy review

SINGAPORE (ICIS)–Thailand’s national oil and gas firm PTT is conducting a strategic review of its businesses and ls looking for potential partners in downstream operations.

“PTT has been reviewing and improving its business strategy and model regularly in line with the changing competitive environment of the industry,” the company told ICIS in an e-mailed statement on Thursday.

“Finding a strong partnership is one of tools that PTT may consider which there are several ways of partnership, not be limited to only the divestment, it can be a joint ventures or other methods,” it said.

PTT CEO Kongkrapan Intarajang was quoted on 21 August by newswire agency Bloomberg as saying that the company is looking for partners to provide expertise and funding for some of its petrochemical and refinery units.

PTT group’s petrochemical operations include refining, production of olefins, aromatics, polymers, fertilizers, liquefied petroleum gas (LPG), and base oils, as well as trading of petrochemical products.

These operations are carried out through subsidiaries PTT Global Chemical, Thai Oil, and IRPC

“We are in talks with several potential investors who are interested in taking stakes in subsidiaries to gain a gateway for expansion in southeast Asia,” Intarajang was quoted as saying by Bloomberg.

“We will be quite careful about any new partners. They must have the technology and expertise that can add a lot of value.”

PTT said that “there is no conclusion regarding the news related to petrochemical and refinery business now”.

Notwithstanding its pursuit of strategic partnerships, the company said that PTT intends to retain controlling stakes in its key business units.

This will ensure that “PTT can have majority control in order to align the goals of the entire PTT group, as all flagship companies are important parts of PTT’s strategy,” it added.