The rating on Thai Oil Public Co. Ltd. (Thaioil) is supported by the following strengths: Operational integration with and strategic importance to state-owned oil and gas conglomerate PTT. PTT has a 49.1% stake in Thaioil and is PTT's flagship refinery. Thaioil and PTT have a product offtake and crude oil supply agreement (POCSA), under which Thaioil procures about 50% of its crude oil through PTT and PTT purchases a minimum 49.99% of Thaioil's refining capacity, subject to certain conditions. We expect PTT to continue to provide support to Thaioil, when required, to ensure Thaioil's continued efficient operations. Favorable cost structure and flexibility in feedstock selection. Thaioil's favorable cost position is supported by its large-scale operations and high utilization rates. As
