Under intense competition in a stagnant domestic market, Thaioil has researched the possibility of setting up oil refineries in Vietnam as well as importing finished oil products into other Southeast Asian countries, managing director Viroj Mavichak said last week.

Based in Sri Racha in Chon Buri, Thaioil is ready to build oil refineries where PTT Explo-ration and Production has set up businesses, if the oil discovered and drilled proves commercially viable, said Viroj.

"Thaioil needs to improve its organisational management and its refineries' efficiency so it can compete globally.

"Oil is such a scarce commodity in this world. Thaioil can grow if it can lower its production costs," the MD said.

"We have to weigh the costs of importing oil against setting up operations where the sources are."

Today it costs Thaioil, incorporated in 1961, US$2 (Bt73) to $2.50 to refine a barrel of crude, which is a competitive rate within the Asia-Pacific region.

Staying true to its image as "one of the leading fully integrated refining and petrochemical companies in the region", the refinery, which is the country's largest, will invest Bt200 million in creating a new corporate culture.

Thaioil produces 225,000 barrels of oil per day and will increase output to 275,000 by next year, when its third refinery unit is completed.

PTT's flagship refining company also has interests in other business areas.

These incluse electricity generation and petrochemicals such as paraxylene.

Watcharapong Thongrung

The Nation