An Unexpected Turn of Events for PTTEP to Slump 7% after Acquiring Bongkot-Erawan Fields
PTTEP had been awarded the rights of petroleum exploration and production and as the operator for Bongkot-Erawan fields, but the shares went the opposite and slump on December 13.
PTT Exploration and Production Public Company Limited (PTTEP) closed unexpected lower to ฿125.50/share, plunged ฿8.50 or 6.34%. The highest of the day was ฿135.50/share, and the lowest of the day was ฿125.00/share with ฿8.00 billion in total value. PTTEP had just acquired the concession of petroleum exploration and production and as the operator for Bongkot-Erawan fields with holding interest of 100% and 60% respectively.
However, as the details of the bidding from the Ministry of Energy came out, investors were worried over the lower constant price of natural gas price at ฿116/MBTU on both fields might cause PTTEP to lose its profit.
The offering price at ฿116/MBTU was actually much lower than the current price, which is ฿214.26/MBTU for Bongkot field and ฿165/MBTU for Erawan field. This would lower the electricity fee by 29 satang/unit. In 10 years, this deal would help saving the electricity fee more than 500 billion.
