PTT Exploration and Production (PTTEP) has a five-year investment plan (2019-2023) worth a combined US$16.105 billion (Bt527.51 billion) to support its business expansion both domestically and overseas, the company’s chief executive, Phongsthorn Thavisin, said yesterday.
Following its five year plan, PTTEP will invest $3.256 billion in 2019, $2.946 billion in 2020, $3.479 billion in 2021, and set aside $3.56 billion for 2022 and spend the remaining $2.864 in 2023.
For 2019, Phongsthorn said the company has set aside $3.256 billion (Bt107.45 3 billion) for PTTEP and its subsidiaries, $1.84 billion of which would be capital expenditure (CAPEX) and the remaining $1.416 billion operating expenditure (OPEX). The company also targets average petroleum sales volume at 318,000 barrels of oil equivalent per day (BOED).
The allocation of the 2019 CAPEX is divided for three main business objectives. The first is to maintain a production plateau for existing projects in Thailand and Myanmar with a CAPEX of $1.159 billion. These include the S1, Bongkot, Arthit, MTJDA and Zawtika projects.
Second, will be to increase petroleum reserves and future production. PTTEP plans a CAPEX of $490 million to support its final investment decision (FID) of key development projects, including the Mozambique Rovuma Offshore Area 1, Algeria Hassi Bir Rekaiz, Vietnam B & 48/95 and Vietnam 52/97, and Contract 4 (Ubon) projects.
For the third objective, the company will allocate $191 million for exploration activities in Myanmar and Malaysia to enhance contingent resources that support long-term growth.
“From 2019, PTTEP will apply a more active strategy to maximise the value of existing E&P assets by applying new technology to enhance operational efficiency, while maintaining competitive cost,” Phongsthorn said.
“We aim 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 will create long-term growth and sustainability for PTTEP.”
In accordance with the five-year investment plan, the expected average petroleum sales volume per day from existing assets during 2019-2023 are: 318,000 BOED in 2019; 325,000 in 2020; 326,000 in 2021; 280,000 in 2022; and 235,000 in 2023.
The figures, however, do not yet 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), he said.