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Published on March 5, 2008

At the beginning of this year, Prasert Bunsumpun appointed two chief operating officers for Thailand's publicly listed company, granting them the level of authority he has.

The idea is to give him time to transform PTT from a "national champion" to a "premier multinational company", earning at least 20 per cent of its targeted revenue of Bt2 trillion within five years.

Prasert has also moved Anon Sirisaengsapsin from the parent company to become the chief

executive at its flagship subsidiary PTT Exploration and Production (PTTEP), supplementing the role of its president, Maroot Mrigadat.

Prasert said PTT has to adopt this "twin engine" approach to manage its exponential growth and meet its ambitious growth and overseas expansion targets.

"In our growth strategy, we have focused on the E&P and gas businesses as the major growth engines. Most of the investments will be spent for both businesses. PTTEP has to restructure to meet its target to double production to 400,000 barrels per day of oil within the next five years," he said.

Prasert said the group has grown rapidly, resulting in more  responsibilities for executives. The dual leadership system has been designed to cope with them.

PTT has seen revenue increase from less than Bt400 billion in 2001 to Bt1.49 trillion last year, while market capitalisation has risen tenfold to Bt1 trillion in the same period.

Group market capitalisation is currently Bt2 trillion, representing about 30 per cent of the Thai stock market.

Much of the growth has stemmed from its acquisitions and mergers and subsequent listing on the stock market. While this has increased profitability and market capitalisation, it has a downside.

"These firms are among the top Thai companies. We're getting these jumbo jets to fly together, without crashing. It's very difficult," Prasert said.

Prasert said Maroot, president of PTTEP, would focus on operations to ensure the company runs efficiently. Anon, as chief executive, will focus on strategies, business development, capacity development, process management and other operational issues.

Other subsidiaries that have implemented the twin engine approach include PTT Aromatics and Refining - created the merger of Rayong Refinery and Aromatics (Thailand) - with Permsak Sheva-wattananon of Aromatics as chief executive, and Chainoi Puan-kosoom, of Rayong, as the president.