Bangkok--15 Aug--PTTEP
Mr. Tevin Vongvanich (นายเทวินทร์ วงศ์วานิช), the President and CEO of PTT Exploration and Production Public Company Limited or PTTEP disclosed PTTEP strategic plan and 1st half-year business performance of 2013 as the details below:
1st Half-Year 2013: Net profit of USD 1,041 million
Business performance of the H1 2013 and its subsidiaries reported a net profit of USD 1,041 million (equivalent to 30,922 million baht), an increase of USD 202 million or 24% compared to the net profit of the same period in 2012. This comprises of the recurring profit of USD 1,120 million deducted the loss from non-recurring items of USD 79 million.
The average sales volume from January to June 2013 was 292,102 barrels of oil equivalent per day (BOED). The higher total revenue came from the higher sales volumes from Bongkot project, S 1 project, and Vietnam 16-1 project.
PTTEP payment of an Interim Dividend for the 1st half-year operations of 2013 (January 1, 2013 to June 30, 2013) to the shareholders at the rate of Baht 3 per share; the entire amount is from the net profit under Petroleum Income Tax Act. The date for closing of the Company’s share registration for the right to receive the dividend was on August 9, 2013. The dividend payment date will be on August 23, 2013
Q2 Operating Performance
Exploration Results: Myanmar PSC G and EP-2 Project are currently progressing with its 2D seismic program for both blocks and, which expected to complete in the third quarter of 2013. Algeria Hassi Bir Rekaiz Project’s first exploration phase has completed drilling 9 exploration wells with crude oil and natural gas discovered 8 wells. The project is currently in the second exploration phase with the plans to conduct 3D seismic acquisition, as well as to drill additional exploration and appraisal wells.
Development Process: Myanmar Zawtika Project is in progress of installing intra-field gas pipelines and the main offshore gas export pipeline; constructing central production platform, as well as the onshore and offshore gas export and distribution system; and drilling of a production well. Commercial production is expected to commence in the first quarter of 2014. Algeria 433A and 416B Project completed drilling 5 of 12 total production wells according to the initial plan. The project continues to progress with the construction of processing and pipeline facilities as well as the construction of living quarters and utility facilities in the development area. Production is scheduled to begin in the second half of 2014. The Leismer field in Canada Oil Sands KKD Project has completed the design for the Leismer Expansion, which is aimed to increase production rate of the Leismer field to 40,000 BPD. The project is currently in process of awarding Front End Engineering Design (FEED) contract and expects to receive approval within the third quarter of 2013. Additionally, Corner field is also in process of awarding FEED which is scheduled for completion in September 2013.
Production Capacity: The production process of Montara field in PTTEP Australasia Project began through the introduction of hydrocarbons to the Montara Venture FPSO. Steady production was achieved in June 2013. The company expects to ramp up production to21,000 BPD before reaching 30,000 BPD. This is based on the completion of additional production well which is scheduled for the second half of 2013. First crude oil sales take off is expected in August this year. S1 Project is able to maintain its crude oil production rate from the first quarter of 2013, producing at an average rate of 33,900 Barrel per day (BPD) during the second quarter of 2013. The accomplishment is a result of initiatives continued from the first quarter such as drilling of new production wells. The Leismer field in Canada Oil Sands KKD Project produced bitumen at an average rate of 14,000 BPD during the second quarter of 2013. In June 2013, for Well Pad 5, the project completed the drilling of well pairs, comprised of steam assisted gravity drainage and production wells. The construction is in progress and plans to start-up in the first quarter of 2014. Lastly, during the second quarter of 2013, Vietnam 16-1 Project produced crude oil at 46,293 BPD and natural gas at 28.3 MMSCFD. The project also successfully tested the production capability of the FPSO (Floating Production Storage and Offloading) unit at 60,000 BPD.
Mr. Tevin said “Our performance accordance to the mentioned business strategies enabled PTTEP to increase our average petroleum sales volume up to 300,000 — 310,000 BOED which is 9% higher than last year.”
Result of appraisal wells drilling in M3 block located in the Gulf of Moattama
PTTEP International Limited (PTTEPI), a subsidiary of PTTEP in Myanmar, has started the drilling process of 4 wells which consists of Aung Sinkha-3, Aung Sinkha-4, Aung Sinkha-5 and Aung Sinkha-6 from February to August 2013. The company discovered quantities of gas as follows: for Aung Sinkha-3, there was found gas flow rates of approximately 34.5 million standard cubic feet per day (MMSCFD), with associated condensate flow rates of approximately 195 barrels per day (BPD). The Aung Sinkha-5 well confirms gas flow rates of approximately 9 MMSCFD, whereas the Aung Sinkha-6 well indicates gas flow rates of approximately 14 MMSCFD and also has associated condensate flow rates of approximately 1,820 BPD. However, for Aung Sinkha-4 well, there was no gas flow shown despite gas discovery in the reservoir due to unready of equipment since this was the first well of campaign. Moreover, PTTEPI plans to conduct additional drilling of appraisal well in 2014 for the planning of development and production from the Aung Sinkha field.
Business strategy for business growth
PTTEP 5-year strategy to achieve sales volume up to 600,000 BOED by the year 2020 is as follows:
1. Maintain production plateau for major domestic projects such as S1 Project, Bongkot Project and Arthit Project
2. Accelerate exploration and production growth for international projects such as Zawtika Project, Montara field, Cash/Maple field, Canada Oil Sands KKD Project and Mozambique Rovuma Offshore Area 1 Project
3. Increase proved reserves for more than 10 years of Reserve per Production Ratio (R/P) by accelerates exploration in parallel with partnering with prudent partners
4. Invest in “Star” assets in PTTEP’s growth platform such as Thailand, Myanmar, North America, and East Africa while focuses investment on projects with nearly or in producing projects
Mr. Tevin added, “We have considered that a goal to achieve sale volume up to 600,000 BOED by the year 2020 is more realistic and possible goal.”
Lastly, in the matter of PTTEP 5-year investment plan, from 2013 to 2017, PTTEP total expenditure is USD 24,671 million in which includes Capital Expenditure