PTTEP Conquers 3 Offshores Blocks to Solidify Position in UAE! DBSVS Recomm BUY at ฿109

PTTEP expected the acquisition of rights for exploration and production of Block Offshore 3 in UAE to strengthen its ground in the Middle East, following the company’s Execute & Expand strategy to increase its reserve and production of petroleum in the future. Meanwhile, the analyst recommended “BUY” with a target price at ฿109.00/share.

 

On December 22, 2020, PTT Exploration and Production Public Company Limited (PTTEP) announced that it has won the bidding for exploration and production rights of Offshore Block 3 which is located in the north-west of Abu Dhabi, United Arab Emirates, for a total of 35 years. Earlier, PTTEP also acquired the rights for offshore 1 and 2 in nearby areas with the cooperation of “Eni Abu Dhabi or Eni”.

 

Mr. Phongsthorn Thavisin, Chief Executive Officer of PTTEP, stated that the award of Block Offshore 3 with the cooperation of Eni will strengthen the relationship between PTTEP, Eni and Abu Dhabi National Oil (ADNOC). PTTEP and its partner will jointly develop all three offshore plants to expand the petroleum business in UAE. Meanwhile, the winning of Offshore 3 will expand PTTEP’s position in the Middle East, following the Execute & Expand strategy to increase its reserve and production of petroleum in the future.

 

DBS Vickers Securities (DBSVS) reiterated a “BUY” rating on PTTEP with a target price at ฿109.00/share, expecting higher demand to recover amid positive sentiment on the coronavirus vaccine.

In addition, the company has a CAPEX of US$14 billion in the next five years as the analyst expected a 6% CAGR growth and forecasted an outstanding recovery in 4Q20 earnings due to a spike in oil price.