PTTEP seeks govt guidance on long-term plans
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Gas-field concessions to expire
PTT Exploration and Production will ask the Energy Ministry to clarify its policy on the expiring concessions of key natural-gas fields so that the company can draw up its future investment plan.
Tewin Wongwanich, president and chief executive officer, said yesterday that PTTEP would consult with the ministry on the Bongkot field and the field that the company has co-invested in with Chevron Thailand Exploration and Production.
Bongkot is a major gas field in the Gulf of Thailand, producing more than 1 billion cubic feet per day out of total production of 3 billion cubic feet per day in the Gulf of Thailand, or 20 per cent of the country’s total output. The other 1 billion cubic feet per day is imported from Myanmar.
Tewin said both parties needed to discuss the matter now so that PTTEP can plan its future investment because developing petroleum sources requires a lead-time to keep production continuing.
PTTEP also plans to join in the 21st round of petroleum concession bidding to be held by the Mineral Fuels Department next month.
The investment in Bongkot and the bid for concessions are part of PTTEP’s five-year capital expenditure plan worth US$20 billion (Bt630 billion), which aims to maintain its total production at 300,000 barrels of crude oil equivalent per day.
PTTEP, which is 65 per cent owned by PTT, aims to produce 900,000 barrels per day of petroleum in 2020, up from the present 300,000 barrels. More than 55 per cent of its total revenue is from oil and 45 per cent from natural gas.
The crude-oil price is expected to pass $90 per barrel during the remainder of the year. If it is lower than $70, the company might have to slow down the plan to invest on some projects.
PTTEP is also interested in seeking additional gas-production concessions in Myanmar. Of its five-year investment, 45 per cent is allocated for foreign projects. It already supports five projects in Myanmar.
