PTTEP unveils its 2022 investment plan and 5-year investment plan (2022-2026) with primary focuses on maintaining production volumes and increasing petroleum reserves from major assets, developing key projects adding to future production volume as well as capturing new business opportunities to foster sustainable growth during energy transition. The budget is also allocated to activities related to environment, society and corporate governance (ESG).
Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), said the company has set aside 2022 total expenditure for PTTEP and its subsidiaries at USD 5,666 million (equivalent to THB 190,036 million), of which USD 3,217 million (equivalent to THB 107,895 million) is allocated for Capital Expenditure (CAPEX) and USD 2,449 million (equivalent to THB 82,141 million) is for Operating Expenditure (OPEX). The key business objectives are as follows;
- Maintaining production plateau of the existing projects including the Bongkot Project, the Arthit Project, the S1 Project, the Malaysia Project, the Oman Block 61 Project, the Zawtika Project, as well as carrying out final preparations for operations of the G1/61 (Erawan field) and G2/61 Projects (Bongkot field). CAPEX allocation for this plan is totaled USD 2,494 Million (equivalent to THB 83,661 million).
- Increasing future production volume by advancing the development of three major projects including the Mozambique Area 1 Project, the Sarawak SK410B Project, a successful petroleum discovery with Lang Lebah appraisal well earlier this year, and the Algeria Hassi Bir Rekaiz Project (Phase 2) to achieve planned production start-up timelines. CAPEX worth USD 457 million (equivalent to THB 15,312 million) is allocated to support such activities.
- Accelerating exploration activities to enhance contingent resources for supporting long term growth. Total CAPEX set to expedite these activities is USD 262 million (equivalent to THB 8,788 million), which main activities include the drilling of exploration and appraisal wells in Malaysia, United Arab Emirates and Mexico.
For 5-year investment plan (2022-2026), PTTEP allocates budget of USD 27,164 million (equivalent to THB 911,124 million) with details as the followings.
Unit: USD Million
In accordance with the investment plan, the expected compounded annual growth rate (CAGR) of average petroleum sales volumes in 5-year period is around 5% as follows:
Unit: Barrel of Oil Equivalent per Day
|Expected Average Petroleum Sales Volume||467,000||463,000||473,000||493,000||528,000|
"With regards to 2022 investment budget allocation, PTTEP aims to maintain production volumes from the major assets as well as raising outputs from Bongkot and Arthit fields to serve domestic demand of the country. For the 5-year plan, we will focus on accelerating the development of oil and gas fields in Malaysia after series of successful petroleum discoveries. Based on the investment plan over 5 years, the company expects CAGR at around 5%. Meanwhile, PTTEP targets to invest in new businesses (Beyond E&P) during energy transition period, leaping for low-carbon organization to create sustainable growth in the long term." said Mr. Montri.
Key new businesses cover renewable energy, the commercialization of in-house technologies, new forms of energy (Future Energy) such as hydrogen, carbon capture and utilization (CCU), AI & Robotics as well as the study and development of Gas to Power.
Moreover, PTTEP will continue to conduct its business with concerns in the environment, society and corporate governance (ESG) by allocating budget for Green House Gas Management, Circular Model for E&P, Ocean for Life and Corporate Social Responsibility (CSR) projects, for the sustained value creation to all stakeholders.