PTTEP Reveals a 5-Year Plan to Strengthen Business by Increasing Petro Sales Volume

PTT Exploration and Production Public Company Limited (PTTEP) has announced that the estimated total expenditure for PTTEP and its subsidiaries in 2019 is $3,256 million, of which $1,840 million is Capital Expenditure and the remaining $1,416 million is operating expenditure.

The following provides a breakdown of the 2019 capital expenditures by main business objectives:

1. Maintain production plateau: A Capital Expenditure budget of $1,159 million will be used to maintain the production level of the existing projects in Thailand and in the Republic of the Union of Myanmar (Myanmar) including the S1 Project, the Bongkot Project, the Arthit Project, the MTJDA Project and the Zawtika Project.

2. Deliver project sanction: A Capital Expenditure budget of $490 million will be used to support the Final Investment Decision (FID) of key development projects including the Mozambique Rovuma Offshore Area 1 Project, the Algeria Hassi Bir Rekaiz Project, the Vietnam Block B & 48/95 and Block 52/97 Projects, and the Contract 4 (Ubon) Project in order to increase petroleum reserves and future production.

3. Discover resources: A Capital Expenditure budget of $191 million will be used to accelerate exploration activities to enhance contingent resources for supporting long term growth. The main activities include drilling of exploration and appraisal wells in Myanmar and Malaysia.

 

The company expects its average petroleum sales volume in 2019-2023 to be 318,000 Barrel of Oil/Day (BOED), 325,000 BOED, 326,000 BOED, 280,000 BOED and 235,000 BOED.

PTTEP commits to maintain cost competitiveness, maximize value of existing assets, ensure production continuity in natural gas supply and capture new investment opportunities in prolific areas.

Furthermore, to be agile amidst the new industry landscape, PTTEP has transformed its organization and adopted technology and innovation to enhance its efficiency. PTTEP also evaluates new business opportunities such as Gas Value Chain business and renewable energy for sustainable growth.

 

PTTEP asserts that that the result of Thailand Petroleum Bidding Round 2018 for offshore Exploration Blocks in the Gulf of Thailand No. G1/61 (Erawan field) and G2/61 (Bongkot field), announced on 13 December 2018, is not yet incorporated in the above Five-Year Investment Plan and expected average petroleum sales volume.