PTTEP may cut production goal for 2010

Chief executive officer Anon Sirisaengtaksin yesterday said implementation of production at the Montara field off northwest Australia would probably be postponed the from the first quarter of next year to the second, which means the company will likely miss its average daily production target for the year.

However, it is optimistic output will still grow more than 10 per cent from 230,000-240,000bpd this year, thanks to new production from Montara and a joint development area with Malaysia.

"If the oil price in 2010 is similar to this year, it will be our best year," Anon said.

Due to the oil leak at the Montara field in August, he said PTT Exploration and Production (PTTEP) would book the total value of the expenses in the third quarter. However, he declined to reveal the overall figure the company has had to compensate for damage in this ongoing incident, in which there have been several failed attempts to plug a leak.

Meanwhile, the company has signed a sales and purchase agreement with Stuart Petroleum and Albers Group in order to acquire the entire interest of AC/P33 block for an estimated US$35 million (Bt1.17 billion). The effective date is expected to be the end of next month.

The AC/P33 block, also known as the Oliver field, is also situated off northwestern Australia. It covers an area of 421 square kilometres and is 40km from the Jabiru and Challis offshore oil fields, which are also operated by PTTEP.

"The deal was made with the aim to generating synergies on existing assets that we had earlier invested in. The investment in Oliver field is part of our strategic plan to seek opportunities in the target area, as well as to speed up the development by using floating LNG technology," he said.

PTTEP plans to invest Bt480 billion over the next five years.

This is aimed at ensuring sufficient supply, as Thailand's oil consumption is expected to increase from 1.7 million bpd to 2.7 million bpd in the next 10 years.

PTTEP operates in the upstream oil and gas business in 13 countries.