Tipso Asphalt has decided to buy crude oil from other sources instead of Venezuela to avoid the risk of violating US sanctions on that country.

However, Tipso stated that buying crude oil from other producers or trading companies would cost around 20 per cent more.

Chaiwat Srivalwat, Tipso’s managing director, added that the company would resume purchasing oil from Venezuela if next US president Joe Biden ends sanctions on the South American country.

Chaiwat added that the crude oil stored in Tipso’s distilleries was enough for oil production until the first quarter of 2021. The new lot of crude oil will be purchased within this last quarter or within January 2021, so as to make sure that crude oil stocks will be adequate for oil production in the second quarter of 2021.

Tipso reported net profit of Bt684.84 million for the third quarter of 2020, increasing19 per cent over the same period last year. Revenue in the third quarter was Bt1.18 billion, slightly lower year on year.

In the first nine months of 2020, Tipso’s net profit and revenue were Bt2.09 billion and Bt3.81 billion, respectively, up 9 and 1 per cent.

Source: Nationthailand