Bangkok--7 Jan--PTTEP
- Increase sales volume to 292,000 barrels of oil equivalent per day or a rise of 6%
- Accelerated development plan to increase our proved reserves life (R/P) to 10 years
- Invests over USD 27,000 million in the next 5years, from 2557-2561 as per long term strategic plan to support higher energy demand in the future.
Mr. Tevin Vongvanich, President and CEO of PTT Exploration and Production Public Company Limited or PTTEP revealed 2013 achievement, strategic plan and 5-year plan as details below:
2013 Achievement
In 2013, PTTEP has steadily grown as the Thai national petroleum exploration and production company with the production rate of 292,000 barrels per day (BPD), 6% higher than year 2012.
In 2013, there were key milestones;
- S1 Project has reached 30-year production anniversary with contribution of 231 million barrels of oil to serve Thailand’s demand and highest production rate of 37,890 BPD on February 25, 2013.
- BongkotProject celebrated its 20-yearproduction anniversary with accumulated gas production over 3.7 trillion cubic feet (TCF) and accumulated condensate production over 112 million barrels (MBOE).
Furthermore, Montara Field started up its first crude oil production at 10,000 BPD while
Zawtika Project is under the commissioning process which is expected to produce natural gas in the first quarter of 2014.
For exploration, PTTEP successfully found petroleum in Algeria HassiBirRekaiz Project and
naturalgas in Myanmar M3 Project.
For investment expansion, PTTEP and Pertamina jointly signed Share Purchase Agreements (SPAs) to acquire the subsidiaries of Hess Corporationin Indonesia. The transaction of Natuna Sea A has been accomplished by end of 2013.
Financially, domestic and international investors hold high confidence in PTTEP as the company has entered the Stock Exchange of Thailand (SET) for 20 years. We then successfully raised capital from the stock market after 3 Initial Public Offering (IPO), and consistently expanded their investment both in Thailand and abroad. All leads to continuous growth of reserves, production, and rate of return that is higher than the industry average.
In corporate social responsibility (CSR) perspective, PTTEP has initiated a Reforestation Project in 2013 with 200,000 rais by 2020. SuansriNakhonkhueankhan Ecosystem Learning Project in Bangkachao has started under the initiative of Her Royal Highness Princess MahaChakriSirindhorn. Lastly, PTTEP has cooperated with PTT Group to establish Rayong Institute of Science & Technology (RAIST) and Rayong Science Academy (RASA) in order as part of its plan to boost long-term business sustainability and to develop an academy focusing on science and technology.
Throughout the year of 2013, PTTEP has been widely recognized for its committed operation as it has been ranked as top quartile level by the International Association of Oil and Gas Production (OGP) for improved Lost Time Injury Frequency (LTIF). Additionally, PTTEP also received many awards;
- “NACC Integrity Awards 2012” from the National Anti-Corruption Commission (NACC)
- “Top Corporate Governance Report Award” for the third consecutive year from the Stock Exchange of Thailand (SET)
- "The Investor Relations Award” from the Stock Exchange of Thailand (SET)
- The Board of the Year 2012/2013 in four catgories:
- Board of the Year for Exemplary Practices
- Hall of Fame-awarded to Board that have been honored with the Board of the Year Awards for Exemplary Practices for 3 consecutive times
- Board of the Year for the Distinctive Practices
- Audit Committee of the Year for the second time
- “Most Organized Investor Relations” and “Best Strategic Corporate Social Responsibility” awards from Hong Kong’s Alpha SEA Magazine.
These recognitions and awards endorsed our unfailing commitment to high standards. PTTEP conducts its business as a responsible corporate member of the society. We hold issues of society and environment at heart as we operate with strict corporate governance policies.
PTTEP Strategic Plan
PTTEP has accomplished major success while implementing several changes to better prepare PTTEP for future business challenges and sustainable growth. Our long term strategy was revised to strike a balance among 3 directions: production (Big), reserves life (Long) and investment return (Strong). The company adjusted our previous 2020 production aspiration of 900 kbd down to a more realistic target of 600 kbd. However, the company has accelerated exploration and production in order to maintain capacity. As well as explore more reserve in overseas projects. To improve our proved reserves life (R/P) to 10 years, to maintain our ROCE above an E&P industrial average, and to retain our credit rating at the country level.“PTTEP also plans to expand its investment in new projects, both the acquisition and merger in the initial production or in development phase, in order to increase production and proved reserves. Moreover the company attempts to develop capacity of the organization in many areas in technology, procedure, human resource development and funding to achieve the company’s strategic plan and goals” Mr. Tevin added.
Invests over USD 27,000 million for 5-year plan
The capital expenditure and operating expenditure of the company and its subsidiaries from 2014to 2018will be approximately USD 27,282million. The major of investment allocation will aim to develop PTTEP’s exploration and production projects in Thailand and aboard. The planned expenditure is shown in the chart;
Unit: USD Million
2014 2015 2016 2017 2018 2014-2018
Capital Expenditure 3,455 3,712 3,634 3,706 3,025 17,532
Operating Expenditure 2,052 1,831 1,834 1,924 2,109 9,750
Total Expenditure 5,507 5,543 5,468 5,630 5,134 27,282
The plan has not yet included the investment expenditure for support new venture opportunities.
In 2014, PTTEP expects to increase sales volume to 337,000 BOED, 16% increase from year 2013. The overall of investment expenditure at USD 5,507 million is planned in different projects;
Production activity: Maintaining production levels through high-technology to optimize petroleum reserves for sustainable production in major projects in the country and overseas including Bongkot, S1, MTJDA-B17, Canada Oil Sands KKD, PTTEP Australasia (Montara field) projects.
Development activity: Focusing on project management to complete the operation plan and budget in order to generate more passive income and value-added benefit to the company in the near future resulted from major projects for example; Algeria 433a & 416b, Mozambique Rovuma Offshore Area 1 and Floating Liquefied Natural Gas (FLNG) (Cash & Maple field) projects.
Exploration activity: Managing the investment management of various exploration projects; Myanmar M3, Myanmar PSC G & EP2, Algeria HassiBirRekaiz and exploration projects in Australia, Mozambique and Kenya to increasefuture reserves and production as part of the company’s sustainable growth.
The expected average petroleum sales volumes per day based on existing projects for the years 2014 – 2018 are as follows:
Unit: Thousand Barrel of Oil Equivalent per day
2014 2015 2016 2017 2018
Expected average petroleum sales volume 337 354 344 330 321
“Beside the important of petroleum exploration and development to increase PTTEP’s reserve, the company will spend 40% of net profit. We also emphasize on technology development and corporate sustainable development as well as environment. This is in line with our corporate strategies that PTTEP will spend 6% of net profit in technology and R&D, 4% in CSR which are also highlighted in our strategies”. Mr. Tevin added.