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PTTEP sets aside 5-year investment budget of $27 bn

PTT Exploration and Production has allocated US$27.28 billion (Bt903 billion) in a five-year investment and acquisition plan to develop projects both locally and abroad.

The amount comprises capital and operating expenditure for the development of production and exploration projects through to the end of 2018, president and chief executive officer Tevin Vongvanich said yesterday.

PTTEP expects to produce 337,000 billion barrels per day this year, an increase of 16 per cent from last year's level.

It estimates this year's total investment expenditure at $5.51 billion, which will support the following projects.

On the production side, the company will try to maintain its production level via technology to boost petroleum reserves for long-term production sustainability in major projects, both locally and overseas.

These include the Bongkok and S1 projects in Thailand, the Thai-Malaysia B17 project, the Kai Kos Dehseh Oil Sands Project in Canada, and the PTTEP Australia (Montara Cape) project.

In terms of development, PTTEP will focus on project management and proceed with production to generate revenue and create value-added benefits in the near future from core projects such as Algeria 433 and 416B, Mozambique Rovuma Offshore Area 1 and the floating liquefied natural gas (FLNG) project of the Cash-Maple field, he said.

As for exploration, the company will place emphasis on managing investments in a number of projects, such as the M3 offshore block and PSCG projects in Myanmar, the EP-2 Hassi Bir Rekaiz project in Algeria, and projects in Australia, Mozambique and Kenya.

This will boost its oil reserves and production capacity, which is crucial for supporting PTTEP in the long run, said the company head.

Apart from the importance of exploration and development of petroleum sources to boost oil reserves, for which PTTEP allocates as much as 40 per cent of its operating profit, the company has also set aside about 6 per cent of its profit for technological research and development - and another 4 per cent for social projects, communities and environmental preservation.

The company has revised its long-term strategy to strike a balance among three directions: production, reserves life, and investment return. As a result, the target for production output expansion for the year 2020 has been lowered from 900,000 barrels per day to 600,000, he said.

The company also plans to raise investment in new projects through both mergers and acquisitions for operations in the early production or development stages.

This is so that it can promptly raise production output and oil reserves and boost its capabilities in other areas, such as technology and work systems/processes, personnel and funding sources to support the company's business plans and attainment of objectives, Tevin said.


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