The Long Presence in Thailand
Shell is involved in a wide spectrum of Thailand's petroleum and chemicals industries, from exploration and production, refining of crude oil to marketing of a broad range of oil and chemical products.
The presence of Shell in the Kingdom of Thailand started when the SS Murex, a purpose-built tanker, arrived in Bangkok with the country's first bulk shipment of kerosene on 23rd September, 1892. In the 40 years following the arrival of the SS Murex, the kerosene market in Thailand expanded as more and more people used Shell's `Crown' kerosene as a domestic fuel. Messrs.
Markwald & Co. were named the first agents in Thailand to market all Shell products. Later on, The Asiatic Petroleum (Siam) Ltd., a subsidiary of the Royal Dutch Shell Group of Companies appointed the Borneo Co., Ltd. as the official Shell representative in Thailand.
The import of kerosene, gasoline and other related petroleum products increased up to the outbreak of World War II, when all operations of The Asiatic Petroleum (Siam) Ltd. were suspended. Following World War II, the Thai government invited Shell to return to Thailand and resume its pre-war operations and, in 1946, The Asiatic Petroleum (Siam) Ltd. changed its name to "The Shell Company of Thailand Limited". The company is 100% owned by Shell Overseas Holdings Ltd.
The company operates a main storage and distribution terminal for oil and chemical products at Chong-Nonsi, Bangkok, which, together with several upcountry depots, serve a large network of service station throughout the country.
In addition to providing quality products and services, the company contributes to the Thai society in the areas of education, arts and culture and community development. Its contribution to the society has been recognised at the highest level. On 17th August, 1990, His Majesty the King of Thailand awarded the Royal Insignia (the seal of Garuda) to The Shell Company of Thailand Limited, making the company the first in the country's oil industry to be so honoured. Shell commenced oil exploration in Thailand in 1979 through Thai Shell Exploration and Production Company Limited.
Its Sirikit Oil Field, the first commercial oil field in Thailand named in honour of H.M. Queen Sirikit, was discovered in 1981. The field is situated in Lan Krabu District of Kampaeng Phet Province and the crude oil produced from the field is named "Phet Crude" after the name of the province. Sirikit Oil Field was developed jointly with the state's PTT Exploration and Production Public Company Limited, with a daily output of approximately 20,000 barrels of Phet Crude which was solely purchased by The Petroleum Authority of Thailand (PTT).
Shell has sold all of its shares in the exploration and production business in Thailand to PTT Exploration and Production Public Co., Ltd. The signing of the agreement on the sale of the share took place on 30th December, 2003. Approximately 150 million barrels of Phet Crude from Sirikit Oil Field were produced under the operation of Thai Shell Exploration and Production Co., Ltd. before the oil field was handed over to PTTEP to carry on the operations
In the downstream development, a joint venture company, Rayong Refinery Company Limited was formed in 1991 with Shell holding 64% and The Petroleum Authority of Thailand (PTT) 36% to build and operate the country's fourth refinery. The state-of-the art refinery is located in the Map Ta Phut Industrial Estate, Rayong Province. Rayong Refinery, with a capacity to process 145,000 barrels per stream day, started up in January 1996 and became commercially operational in April of the same year. But due to business justification, Shell has sold the entire share in Rayong Refinery to PTT in 2004.