PTTEP Reveals a 5-Year Plan, Investing ฿743bn to “Expand” and “Execute”!

PTT Exploration and Production Public Company Limited (PTTEP) would like to announce that the estimated total expenditure for PTTEP and its subsidiaries under the “EXECUTE” and “EXPAND” strategies in 2020 is USD 4,613 Million, of which USD 2,647 Million is Capital Expenditure and the remaining USD 1,966 Million is Operating Expenditure. The total expenditure for the five-year plan is set to be USD 24,619 Million or approximately Baht 743 Billion ($1 = ฿30.21 on December 16, 2019).

 

From the recent achievements under the “Expand” strategy in the strategic areas this year, PTTEP will focus on “EXECUTE” strategy in the 2020. The following provides a breakdown under the 2020 Capital Expenditures by main business objectives:

1) Maintain production plateau: A Capital Expenditure budget of USD 1,941 Million will be used to maintain the production level of the existing projects including the S1 Project, the Bongkot Project, the Arthit Project, the MTJDA Project and the Zawtika Project. Moreover, PTTEP will focus on maintaining production volume and managing asset transitions of the newly acquired projects according to the plans; such projects include Malaysia Projects, Partex, G1/61 Project (Erawan field) and G2/61 Project (Bongkot field).

2) Increase production volume in the future: A Capital Expenditure budget of USD 425 Million will be used to support the 3 main development projects including Malaysia Block H Project, the Mozambique Rovuma Offshore Area 1 Project and the Algeria Hassi Bir Rekaiz Project to start production as planned and accelerate plan to develop Sarawak SK 410B project in Malaysia after the successful discovery in this year in order to reach the Final Investment Decision (FID).

3) Discover resources: A Capital Expenditure budget of USD 281 Million will be used to accelerate exploration activities to enhance contingent resources for supporting long term growth. The main activities include the drilling of exploration and appraisal wells in Myanmar and Malaysia In order to achieve the operational continuity as planned above, PTTEP has announced its Five-Year Investment Plan (2020 – 2024) as per the table below:

In accordance with the Five-Year Investment Plan, during 2020-2024 PTTEP expects Compounding Annual Growth Rate (CAGR) of sales volume for 5 year period of around 6%. The expected average petroleum sales volume per day from existing assets are as follows:

Furthermore, to be agile amidst the new industry landscape, PTTEP emphasizes on transforming its organization and adopting technology and innovation to enhance its efficiency.

PTTEP also evaluates new business opportunities such as “Gas to Power business” in Myanmar where PTTEP can add value to the existing natural gas fields, and Artificial Intelligence business through the company “AI & Robotics Venture (ARV)”, a subsidiary of PTTEP.

The aforementioned investment plan is carried out under the principles of sustainable development in the aspects of economy, society and environment in order to ensure sustainable value creation to all stakeholders.