Pttep boosts working capital

Watcharapong Thongrung

The Nation, Dow Jones Newswires

The 91-day bills will be offered on Monday to institutional and individual investors for a minimum purchase of Bt10 million, and carry an interest rate of 3.8 per cent. Siam Commercial Bank is the underwriter.

The issue is the first tranche of the company's Bt20-billion bills-of-exchange programme. Later tranches will range from Bt1 billion to Bt5 billion with a tenor of up to 270 days.

CEO Anon Sirisaengtaksin yesterday said the proceeds would help maintain cash of Bt5 billion a month to invest in any new projects. PTTEP's short-term financing programme will play a key role in developing the short-term bond market, he said. It is rated "AAA" by Tris Rating, the highest grade for short-term corporate debt.

PTTEP is keeping this year's sales target at 223,000 barrels of oil equivalent per day, Anon said. The company's natural-gas production from the Arthit Gas Field in the Gulf of Thailand will run consistently at 330 million cubic feet per day from today.

The Arthit project, where production began on March 26, faced hiccups during the start-up.

The Arthit North project, which is expected to produce 120 million cfpd, will start production in August as planned, he said.

Thailand's second-largest oil and gas producer by output expects its Vietnam 92 project to start crude-oil production next quarter at an average 20,000 barrels per day, he added.