PTTEP sets investment budget of USD 3,256 million for 2019 To maintain production volume, increase petroleum reserve and capture new businesses for long term growth

Energy Press Releases Tuesday December 18, 2018 13:33
Bangkok--18 Dec--PTTEP

PTT Exploration and Production Public Company Limited (PTTEP) announces its 5-year investment plan (2019-2023), to accomodate value added creation from the legacy assets through exploration and production activity and to support investment opportunities in prolific areas in order to sustain the company's long term growth.

Phongsthorn Thavisin, PTTEP Chief Executive Officer, announced that the company has set aside total expenditure for PTTEP and its subsidiaries in 2019 of USD 3,256 million (equivalent to THB 107,453 million), of which USD 1,840 million (equivalent to THB 60,721 million) is Capital Expenditure (CAPEX) and USD 1,416 million (equivalent to THB 46,732 million) is Operating Expenditure (OPEX). The company also targets the average petroleum sales volume at 318,000 barrels of oil equivalent per day (BOED).

The allocation of 2019 CAPEX is divided for 3 main business objectives. The first one is to maintain production plateau of the existing projects in Thailand and the Republic of the Union of Myanmar with CAPEX of USD 1,159 million (equivalent to THB 38,247 million) allocated. These projects include the S1 Project, the Bongkot Project, the Arthit Project, the MTJDA Project and the Zawtika Project. Secondly, to increase petroleum reserves and future production, PTTEP plans CAPEX of USD 490 million (equivalent to THB 16,170 million) to support the Final Investment Decision (FID) of key development projects including the Mozambique Rovuma Offshore Area 1 Project, the Algeria Hassi Bir Rekaiz Project, the Vietnam B & 48/95 and the Vietnam 52/97 Project, and the Contract 4 (Ubon) Project. For the third objective, the company allocates USD 191 million (equivalent to THB 6,304 million) for exploration activities including in Myanmar and Malaysia to enhance contingent resources that support long term growth.

"From 2019 onwards, PTTEP will move forwards through more active strategy as we propel to maximize value of existing E&P assets by applying new technology to enhance operational efficiency, while maintaining competitive cost. We target to increase competitiveness through our business diversification plan, which focuses investments in the Gas Value Chain business, robotics and artificial intelligence (AI) as well as renewable energy. This diversification would create long-term growth and sustainability for PTTEP," said Phongsthorn.

In order to achieve the operational continuity as planned above, PTTEP also allocates its budget for 5-year operations (2019-2023) at USD 16,105 million (equivalent to THB 525,055 million) as per the details below:

Unit : USD Million
2019                   2020   2021   2022   2023   2019-2023
Capital Expenditure     1,840   1,667   2,223   1,927   1,653       9,310
Operating Expenditure   1,416   1,279   1,256   1,633   1,211       6,795
Total Expenditure       3,256   2,946   3,479   3,560   2,864       16,105

In accordance with the 5-year investment plan, the expected average petroleum sales volumes per day from existing assets during 2019-2023 are as the following table. The figures, however, is yet to incorporate the results of the expiring petroleum concessions bidding for offshore blocks in the Gulf of Thailand No. G1/61 (Erawan) and G2/61 (Bongkot).

Unit: Barrel of Oil Equivalent per Day
2019                                     2020     2021     2022     2023
Expected Average Petroleum Sales Volume   318,000   325,000   326,000   280,000   235,000

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