Bangkok--Feb 6--PTTEP
Mr Maroot Mrigadat, President of PTT Exploration and Production Public Company Limited or PTTEP presented a detailed summary of PTTEP’s 2005 financial statements, important issues affecting results in 2005 and PTTEP’s plans for further expanding operations in Thailand and overseas in 2006.
PTTEP financial statements for 2005, a profit of Baht 23,735 million
Operation results (unaudited) for year 2005 showed that PTTEP and its subsidiaries had a net profit of Baht 23.735 billion, an increase of Baht 7.869 billion or 50% compared to a profit of Baht 15.866 billion in 2004. Total revenues for PTTEP and its subsidiaries amounted to Baht 69.583 billion, an increase of Baht 21.166 billion or 44% when compared with Baht 48,417 million for 2004. Diluted earnings per share were Baht 36.21. PTTEP and its subsidiaries’ return on shareholders’ equity this year was 36.86%.
This was mainly due to an increase in sales of petroleum of Baht 20.159 billion, reflecting a higher average petroleum sales price of USD 29.37 per barrel of oil equivalent (BOE) when compared to USD 23.38 per BOE in 2004. In addition, sales volume increased this year to 153,531 BOED from 134,070 BOED previously. The higher sales derived mainly from crude oil sales from the S1, B8/32 & 9A and Nang Nuan projects, and natural gas and condensate sales from the Bongkot, Pailin and Yetagun Projects.
PTTEP made an upfront payment under the Gas Sales agreement with PTT Public Co. Ltd. in order to help subsidize the automatically adjusted formula for electricity fees rate (Ft) to EGAT, which amounted to Baht 1.169 billion.
Proved Reserves increase by 6%
As of December 31, 2005, PTTEP’s proved reserves were approximately 151 million barrels of crude oil and condensate, and 5,158 billion standard cubic feet of natural gas or combined approximately 950 million barrels of oil equivalent (MMBOE) an increase of 51 MMBOE or 6% when compared with proved reserves of 899 MMBOE as of December 31, 2004
PTTEP to invest more than Baht 60 billion in 2006 to increase sales volume by 16%
In 2006 PTTEP is accelerating the development of many projects to help supply the continually growing energy needs of Thailand. PTTEP has set a target average sales volume at 179,000 barrels of oil equivalent per day (BOED), a 16% increase from average daily sales volume of 2005. To meet this goal PTTEP has earmarked Baht 63.341 billion in 2006 for the development of projects and production of petroleum both in Thailand and overseas for all 29 projects. Of this PTTEP will invest 77% in Thailand and the remaining 23% overseas.
A large portion of the investment in the country will go towards projects in the Gulf of Thailand. Approximately Baht 13.6 billion or 21% will be invested in Arthit Project for the installation of a production platform, 6 wellhead platforms and the drilling of a further 44 development wells to meet the start up production target of 330 million standard cubic feet per day (MMSCFD) in the first half of 2007.
PTTEP will invest in the Bongkot Project approximately Baht 5.9 billion (9%) for the construction of a 6 wellhead platforms and the drilling of 11 wells. Approximately Baht 5.6 billion (9%) will be invested in the S1 Project to drill 35 wells to increase daily production volumes to 19,300 BOED. PTTEP will invest approximately a further Baht 5.7 billion (9%) in the B8/32 & 9A project to install 5 production platforms and to drill 105 additional wells to maintain production targets of 53,000 barrels per day (BPD). Additionally PTTEP will invest approximately Baht 4.1 billion (7%) in the MTJDA project to drill 7 wells. The company expects this project to start gas production in 2008 at 270 million standard cubic feet per day (MMSCFD). PTTEP will also invest approximately Baht 2.4 billion (4%) in the Nang Nuan Project to install 2 wellhead platforms and to drill 2 exploration wells to maintain production volumes at 5000-7000 BPD.
Overseas PTTEP will invest approximately Baht 4.7 billion (7%) in the Oman 44 Project which is targeted to begin production in July of this year at the rate of 50 MMSCFD of gas and 4,000 BPD of condensate; in addition PTTEP plans to invest approximately Baht 6.2 billion (10%) in operations in Myanmar and approximately Baht 2 billion (3%) in Vietnam.
PTTEP splits par from Baht 5 per share to Baht 1 per share
On January 30, 2006, PTTEP Board of Directors passed a resolution to par split from Baht 5 a share to Baht 1 per share. This was with a view to increase market liquidity whilst also increasing the opportunities of smaller investors being able to invest in PTTEP shares. This will increase the number of ordinary shares from 664,400,000 to 3,322,000,000. This resolution will have to be passed at the Shareholders Meeting to be held on April 5, 2006.
PTTEP targets potential expansion areas overseas
PTTEP in 2006 will continue to look at regional investment opportunities with high petroleum potential. The long-term strategy for both the Ministry of Energy and PTTEP is to reduce the dependence on imports of crude oil and in so doing also to reduce the flow of cash out of Thailand to pay for these imports.
In Thailand at the end of January 2006, following the 19th Petroleum Concession Bidding Round of the Department of Mineral Fuels, the cabinet approved PTTEP proposals for 2 offshore blocks G9/48 in partnership with Unocal Andaman and G12/48 with TOTAL E&P Thailand Limited, and Thai Energy Limited; PTTEP being the operator for both blocks. The award for the petroleum concessions will be effective after official confirmation from the Ministry of Energy.
In northern Africa apart from existing interests in Algeria where PTTEP is performing exploration drilling at the Algeria 413a & 416b projects. PTTEP is interested in investment opportunities in Libya, Sudan and Egypt. All of these nations in this region have significant petroleum potential and the added benefits of having a well-established infrastructure for the oil industry and a ready-made market in Europe on the doorstep.
For more information, please contact
Sidhichai Jayant/ Tongchit Pongorapin/
Panlop Limsakul / Jakra Srinaganand
External Relations Department
Tel. +66 (02) 537 4592, +66 (02) 537 4587, +66 (02) 537 4507 End.