PAPA Petroleum, the fledgling fuel distribution business of timber baron Try Pheap, has signed a fuel purchase agreement with PTT Global Chemical Plc, a subsidiary of Thai state-owned PTT, the company announced in a Facebook post yesterday.
Bin Many Mialia, marketing division manager for PTT (Cambodia) Ltd, said he was aware of the agreement, but did not know the details.
“I know that it was signed last week in Bangkok, but I do not know the specifics of the deal as it does not concern PTT Cambodia,” he said.
Representatives for Try Pheap Group declined to discuss the agreement when reached by phone yesterday.
However, the head of distribution for PAPA Petroleum, who did not wish to provide his full name, confirmed that the agreement was signed and would support the company’s operations.
“With this agreement we will be able to distribute fuel to Phnom Penh and across the country,” explained Vuthy.
He declined, however, to explain why the previous fuel purchase agreement with Thai-based supplier AEC Energy Co Ltd signed in February fell through.
PAPA Petroleum registered with the Ministry of Commerce in 2015. The company claims it is authorised to distribute petroleum nationwide, and recently showed off a fleet of more than a dozen Chinese tanker trucks.
Dith Tina, secretary of state for the Ministry of Mines and Energy, confirmed that the ministry licensed PAPA Petroleum in February to build fuel storage depots in two provinces.“PAPA Petroleum has a license to import and stock petroleum products in Pursat and Preah Vihear provinces,” he said.
However, while PAPA Petroleum lists four active retail stations on its company website, with publically available photos of construction for retail operations in Pursat and Bantey Meanchey provinces, Tina said the company does not yet have a retail licence.
“The ministry has not received any request from PAPA Petroleum to operate gas stations,” he said.