PTT studying merger of three subsidiaries

A decision on the move is expected in the current quarter. However, the scenario could result initially in merging just the first two subsidiaries and including the third later, he said.

Prasert did not state the exact timing when the three companies would be merged, but said the plan to merge all four subsidaries would be completed in 2012.

He said Thai Oil was not included in the first round of the plan because of its plant location. It is in Chon Buri, while the others are in Rayong.

Also, Thai Oil has no projects affected by the Map Ta Phut crisis. Although IRPC's projects are located in Rayong, it has not been hit by the problem, and may be grouped in the first round.

"To merge four subsidiaries at one time is impossible. So we will first combine two or three companies. We will merge Thai Oil with others by the year 2012," Prasert said.

PTT said that it had conducted a feasibility study on merging the four subsidiaries - which operate upstream to downstream - since last year, in order to consolidate operations, cut costs and boost efficiency. After they are merged into one entity, it will be among the top three energy firms in Asia.

The plan was once expected to be concluded last year but has been delayed.

Prasert said PTT might adjust retail oil prices downward if global oil prices continued to decline.

"The company's marketing margin in early January was at 50 satang per litre, which was very low for petrol-station providers. After global oil prices have declined, our marketing margin has increased to Bt1 per litre. If the margin rises to Bt1.50 per litre, we will adjust the retail oil prices downward," he said.

Prasert stood by his forecast that global oil prices this year would be at roughly US$80 (Bt2,624) per barrel.