The Nation

Price of PTTEP products expected to rise in line with oil and gas prices

PTT Exploration and Production (PTTEP) expects the average price of its products in the second quarter to rise compared with the first quarter because of the increase in gas and oil prices.

President and chief executive officer Anon Sirisaengtaksin said yesterday that PTTEP would adjust the price of natural gas produced in the Yadana, Yetagun and Bongkot fields to reflect the increasing global oil prices. Meanwhile, the selling price of crude oil is likely to continue rising if the global price of oil stands at more than US$115 per barrel.

"The selling price outlook for the second quarter is likely to remain good. The operation of the sixth gas-separation plant and PTT Chemical's crackers has driven the demand for natural gas. Meanwhile, the production volume is expected to maintain about 271,000 barrels of oil equivalent per day [boed], which is similar to the first quarter," he said.

Penchun Jarikasem, executive vice president for finance and accounting, said the price adjustment for natural gas reflected the global oil price over the past six to 12 months.

About 20 per cent of natural gas production will be adjusted against the selling price in the second quarter.

Anon said PTTEP had decided to resume oil and gas production in Australia's Montara field in the first quarter of 2012, delayed from the previous plan of doing it later this year.

The company wants to be cautious about resuming the project because it may result in an increase in operating cost as a whole and the efficiency of the project.

Postponing the resumption would slightly affect the production volume target of 273,000boed this year, because Montara is expected to produce 35,000boed this year.

"We will not focus on the sales volume, and will instead try to increase the company's revenue from gas-selling price adjustment and high oil prices," he said.

Anon added that the company was looking for a strategic partner to co-invest in Burma's M11 deep-sea exploration projects.

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