PTT EXPLORATION AND PRODUCTION - Target average sales volume at 312,000 BOED
- Accelerate progress of pre-development projects and actively seek M&A opportunities to enhance petroleum reserves and production in the future
Bangkok 10 January 2017 - PTT Exploration and Production Public Company Limited (PTTEP) announces the planned expenditure budget for 2017 at USD 2,903 million, of which USD 1,643 million is Capital Expenditure (CAPEX) and the remaining USD 1,260 million is Operating Expenditure (OPEX). Investments in existing projects located in Thailand and Southeast Asia, the Company's strategic investment locations, account for 88% of total planned CAPEX. The following is a breakdown of CAPEX by region in 2017;
- Projects in Thailand account for 64% of PTTEP's estimated CAPEX in 2017. Key activity is to maintain the production level of the existing projects, which primarily include the Arthit Project, the S1 Project, the Bongkot Project, the Contract 4 Project and the MTJDA Project
- Projects in other Southeast Asia countries account for 24% of PTTEP's estimated CAPEX in 2017. Major activities in this region are mainly in producing Myanmar assets which include maintaining production level of the Zawtika Project and the Yadana Project, as well as in exploration project activities for the Myanmar MOGE 3 Project and the Myanmar M11 Project
- Projects in other regions which comprise Australia, Africa, and North & South America, account for 12% of PTTEP's estimated Capital Expenditures in 2017. Major expenditures go towards operational activities in the PTTEP Australasia Project and the pre-development of the Mozambique Rovuma Offshore Area 1 Project.
The estimated exploration expenditure for the Company in 2017 is USD 138 million, which mostly will be used for seismic acquisition, geological and geophysical studies, and drilling and appraisal activities.
PTTEP has set its investment budget for the next five years (2017-2021) totaling USD 14,950 million (detailed below). The budget takes into account the recent oil price recovery at the end of 2016, and also includes the development expenditures of pre-development projects, namely the Contract 4 (Ubon) Project, the Mozambique Rovuma Offshore Area 1 Project and the Algeria Hassi Bir Rekaiz Project.
Unit : USD Million
2017 | 2018 | 2019 | 2020 | 2021 | 2017-2021 | |
|---|---|---|---|---|---|---|
Capital Expenditure Operating Expenditure | 1,643 1,260 | 1,895 1,272 | 1,984 1,235 | 1,880 1,159 | 1,440 1,182 | 8,842 6,108 |
Total Expenditure | 2,903 | 3,167 | 3,219 | 3,039 | 2,622 | 14,950 |
The corresponding expected average petroleum sales volume per day for Years 2017 - 2021 are as follows:
Unit: Thousand Barrel of Oil Equivalent per day
2017 | 2018 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|---|
Expected average petroleum sales volume | 312 | 311 | 300 | 276 | 263 |
Somporn Vongvuthipornchai, PTTEP President and Chief Executive Officer, said 'This investment plan reflects our strategic directions of 3Rs - Reset, Refocus, Renew - with priority on maintaining the production level to effectively serve domestic energy demand, as well as accelerating the development of existing projects in the pipeline. Besides, the Company has closely monitored the oil price situation, with the flexibility to adjust our investment plan appropriately and strived to uphold the cost optimization and efficiency improvement initiatives through the 'SPEND SMART to Business Sustainability' campaign.
He added that the Company's financial position remains robust with cash on hand of more than USD 3 billion, ready to cope with the fluctuation in global crude prices as well as to seek new M&A opportunities in order to strengthen petroleum reserves and production volumes in the longer term.
PTTEP has also placed a great focus on the Corporate Social Responsibility (CSR) projects with strong commitment to sustainable society development in both domestic and international operating areas. This demonstrates the well-balanced contribution between social benefits and our business commerciality. In addition, the CSR 5-year roadmap has been implemented through both corporate and operational area level covering 4 themes of basic needs, environment, education and culture and sports.
For 2017, the Company has allocated the expenditure budget for CSR projects mainly concentrating on projects with successful track record such as the Forest Restoration for Eco-learning Center, the Crab Hatchery Learning Center, etc. These subsequently reflect PTTEP's branded CSR concept of 'Environmental Stewardship'.
For more information, please contact the Communications and Public Affairs Division
Tongchit Pongorapin Tel. +66 (0) 2537 4587
Nalin Viboonchart Tel. +66 (0) 2537 4834
Kamolwan Chintarat Tel. +66 (0) 2537 4381
E-mail: PTTEPCorpCom@pttep.com
PTT Exploration & Production pcl published this content on 10 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 19 January 2017 14:36:04 UTC.
Original documenthttp://www.pttep.com/en/Newsandnmedia/Mediacorner/Pressreleases/Pttepannounces2017investmentbudgetofusd2903millionwithfocusinthailandandsoutheastasia.aspx
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