Three big firms namely The Bangkok Dock (1957) Company Limited, a Thai state enterprise, Namyong Terminal Public Company Limited, and Sinopec International Petroleum Service Corporation that operates under a Chinese state enterprise today signed an MOU to establish a joint venture in Thailand. Witnesses at the signing ceremony, which took place at the Royal Thai Navy Conventional Hall, are Thailand's Deputy Prime Minister Dr. Wissanu Krea-ngam, Mr. Wang Liping, Minister Counsellor (Economical and Commercial Affairs) of the Thailand-based Chinese embassy, Royal Thai Navy's chief-of-staff Admiral Talerngsak Sirisawat, Royal Thai Navy Dockyard's director-general Vice Admiral Wiroj Ninlapong, and honorable Thai and Chinese guests. Upon signing the MOU, the three giants declared their readiness to provide offshore petroleum installation decommissioning services in the Gulf of Thailand. Positioning their partnership as Thailand's first provider of one-stop services in the field, they seek to respond to the country's demand as several petroleum concessions will expire over the next 20 years.
The Bangkok Dock (1957) Company Limited, which is under Thailand's Ministry of Defense, has engaged in shipbuilding, ship repairs, related businesses, large steel structures, as well as other marine operations. It, moreover, is the only firm to build and repair military ships in Thailand. Listed on Thai stock market, Namyong Terminal Public Company Limited (NYT) has been the total logistic service provider. Holding concessions to operate in several ports including Terminal A5 and Terminal C0 of the Laem Chabang Port, NYT is Thailand's biggest operator of Ro/Ro (Roll on Roll Off) port. Its terminal, moreover, is Asia's second biggest facility for one-stop car import/export services. Sinopec International Petroleum Service Corporation, meanwhile, is in Sinopec Group. Holding 100 per cent of its subsidiary's shares, Sinopec Group is China's biggest state enterprise for energy. The group, moreover, is the world's biggest oil, gas and petrochemical firm. It has also been the world's biggest oil refiner and the world's second biggest operators of petrol stations in terms of station number. With its businesses covering comprehensive petrochemical operations including exploration, crude-oil drilling, refinery and distribution, Sinopec Group was the world's second biggest company in terms of revenue in 2019 and 2020 on Fortune Global 500 list. Moreover, Sinopec Group has ranked among the TOP 10 on Fortune Global 500 list in terms of revenue in 2019 and 2020 for 10 consecutive years already.
The MOU (memorandum of understanding) was inked for the collaboration to operate one-stop petroleum installation decommissioning services based on the strengths and expertise of every MOU party. The services will be comprehensive, covering every step of decommissioning process right from well plugging, to the transportation of petroleum installation structures from the Gulf of Thailand to mainland, to disassembly, and to the disposal of industrial waste. The whole process will deploy world-class technologies. Thanks to the partnership, Thailand will get its first and only provider of one-stop petroleum decommissioning services. The MOU, moreover, deepens the tripartite collaboration in the fields of inshore and offshore petrochemical operations in Thailand. The solid partnership promises to play a crucial role in upgrading Thailand's petrochemical industry in regards to explorations, developments and state-of-the-art equipment/technologies.
Mr. Yang Cheng, deputy general manager of Sinopec International Petroleum Service Corporation, reveals that Thailand's petroleum-decommissioning market is poised to grow significantly in the future. To respond to its growing demand, his company has decided to join hands with the two aforementioned partners. Mr. Yang expects the partnership to deliver synergy, as the strengths of the three giant partners will be combined. His company brings into this partnership Sinopec Group's internationally-recognized petroleum engineering expertise and experiences. Today, Sinopec Group is the world's biggest integrated oil, gas, and petroleum firm. Its strengths include world-class installations and decommissioning of offshore petroleum structures, as well as state-of-the-art technologies and tools. These strengths will be used to upgrade petroleum-decommission services in Thailand.
Dr. Theparak Leungsuwan, director and chief executive officer of Namyong Terminal Public Company Limited (NYT), says this partnership promises to boost his firm's business opportunities and growth. Also, he describes the partnership as being in line with his firm's determination to develop world-class services in response to customers' needs and to expand its business presence to related sectors.
As the provider of one-stop car import/export terminal services (Terminal A5), other port services, and related operations, NYT has also operated storage/warehousing services at the Laem Chabang Port in Chon Buri's Sri Racha district. Its strengths in the field will importantly contribute to the petroleum-decommissioning partnership too.
"At present, not a single firm in Thailand can deliver one-stop petroleum decommissioning services. This tripartite partnership therefore marks a milestone. Backed by highly-experienced personnel and world-class technologies, we are going to deliver one-stop petroleum decommissioning services for offshore petroleum production installations in the Gulf of Thailand as their relevant concessions will start expiring from 2022. Many expiries will take place over the next 20 years," Dr. Theparak concludes.