PTT Exploration and Production Public Company Ltd (PTTEP) revised its higher capital expenditure (capex) to USD $ 21 billion for the 2019 to 2023 period

Bangkok-based PTT Exploration and Production Public Company Ltd (PTTEP), a state-owned oil and gas firm,has revised higher capital expenditure (capex) for the 2019 to 2023 period to US$21.35 billion from US$16.1 billion.

PTTEP president and chief executive officer PhongsthornThaivisin said on July 25 that the higher allocation of US$21.35 billion for the five-year investment plan from 2019 to 2023 was for accelerating exploration activities, particularly for the Zawtika offshore gas field in Myanmar’s Gulf of Moattama as well as other activities under the company’s expansion strategy.

He said the company has successfully concluded business expansion for the first-half of this year that had been planned for.Likewise, this year’s capex has been revised to US$3.57 billion, from US$3.256 billion to align with the business expansion this year. 

However, the higher capex does not include the US$2.08 billion acquisition costs for Murphy Oil Corporation’s Malaysian business completed on July 10 nor the 33.8pc stake in APICO LLC acquired from Tatex Thailand LLC.

Business expansion for the first-half included signing production sharing contracts for offshore Erawan and Bongkot fields in the Gulf of Thailand and the awarded exploration blocks in the United Arab Emirates and Malaysia.

Phongsthorn added that the sales volume target for the 2019 to 2023 period has also been revised higher to better reflect the acquisition of several businesses and oil-and-gas blocks in Thailand and abroad.

In accordance with the revised five-year plan, the company has set a higher target for average petroleum sales volume this year to 345,000 barrels of oil equivalent per day (BOED), an increase of 8.5pc from the 318,000 BOED planned last year. PTTEP expects a compounded annual growth rate for the five-year plan period of 7pc.

PTTEP would now focus on the smooth transition of operations from the acquisitions to ensure sustained production and the company’s long-term growth.

“Our focus will now be on the execution strategy, especially the transitions of operations in Erawan field and other acquired assets. This also includes accelerating the exploration activities in our existing projects including Zawtikaproject in Myanmar to drive PTTEP’s growth in the future,” Phongsthorn said.

(The Myanmar Times: https://www.mmtimes.com/news/pttep-raises-five-year-capex-us21b.html )

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