SET-listed PTT Oil and Retail (OR) plans to spend US$100 million to develop an oil depot in Cambodia following its co-investment in an aviation refuelling service in the country, says president and chief executive Disathat Panyarachun.
The oil depot aims to serve the rapid growth of the post-pandemic Cambodian economy as OR continues to expand its business abroad.
In 2021, OR, China National Aviation Fuel International Holdings and Total Energies Marketing (Cambodia) formed a joint venture called Phnom Penh Aviation Fuel Service Co to operate the aviation refuelling business at Phnom Penh's new airport.
The three companies are equally funded in the project, with a 33.33% investment from each company.
Phnom Penh Aviation Fuel Service signed a concession agreement in July last year with Cambodia Airport Investment Co, which was awarded a concession to develop the new airport.
Mr Disathat said the construction of a jet refuelling facility was 80% complete and is scheduled to open next year.
OR is also considering moving into liquefied petroleum gas for the industrial sector in Cambodia, but the plan has yet to be finalised.
The company wants to add value to its business in Cambodia, after it expanded into petrol stations in the country. The company now has 170 stations.
Mr Disathat said Cambodia can serve as a new market for oil products from PTT Group. Its subsidiary Thai Oil Plc aims to expand its oil refinery capacity by 60% to 450,000 barrels per day, up from 280,000 barrels per day.
OR earlier announced it had collaborated with K-Nex Corporation, a Thai retailer of washing and dryer machines and a franchiser of laundry self-services under the Otteri Wash & Dry brand, to open a laundry service at its filling station in Cambodia.
OR's diversification into this business follows the purchase of a 40% stake worth 1.1 billion baht from K-Nex. The company aims to run laundry services both inside and outside its petrol stations.
K-Nex currently operates more than 950 branches of Otteri Wash & Dry in Thailand.
OR is focusing on non-oil businesses so it does not solely depend on the oil trade, which has a low profit margin.