National oil and gas conglomerate PTT Plc's oil retail unit is allocating 10 billion baht of capital expenditure (capex) to renovate and expand the business over the next five years.
Buranin Rattanasombat, the oil business unit's executive vice-president, said the expansion was meant to pave the way for the company to be one of Asia's top oil retailers.
Most of the budget would be for expanding petrol station development in the local market and neighbouring countries, with a lesser amount set aside for the preparation of new non-oil business.
The expansion abroad covers new development of petrol stations as well as non-oil business stations.
The plan includes increasing petrol stations in Laos to 62 from 24, lifting stations in Cambodia to 65 from 20, and expanding stations in the Philippines to 150 from 85.
PTT is also awaiting openings in the oil retail business in Indonesia, Malaysia, Myanmar, Taiwan and South Korea.
For the local market, the budget will go for petrol station relocation and renovation.
"As the economy sags and oil prices decline we are looking to revamp our internal business in order to improve services and products. That way when the economy rebounds we will be ready," said Mr Buranin.
Some of the capex will be set aside for the development of trading with digital equipment and telecom gadgets. PTT is in talks with telecom companies and banks to develop a digital business through the company's existing Blue Card, a mileage oil service card, he said.
"We have more than 1 million Blue Card holders and in the future we will turn the card into another financial tool to serve non-oil service," said Mr Buranin.
The company plans to renovate its Cafe Amazon coffee shops during the second half before selling to franchisees in other Asian countries. He said several foreign investors and tourists are interested in buying into the franchise, starting the Cafe Amazon business in Japan, Myanmar and Singapore.
PTT plans to expand Cafe Amazon branches to 1,400 by the end of this year, up from 1,250, with a goal of 2,000 branches by 2019.
The company has operated the brand in Cambodia and Laos since 2013, with 20 branches established between the two countries.
"We need to improve Cafe Amazon from service to decorative design before selling franchises," said Mr Buranin.
He said the focus the next five years would be preparing to expand its non-oil business because net profit generated by this segment is higher than from oil retailing business. This will consist of investment in retail food chains and car repair shops at the petrol stations.
It is in talks with several food chains and vehicle repair chains about joint ventures in Thailand before expanding into Asean in the future.
Revenue for the first five months this year consisted of 70% from oil and 30% from non-oil business. But net profit is equal from both segments.