By Jirapan Boonnoon
It will next focus on the smooth transitions of operations from the successful acquisitions to ensure continuity of petroleum production and sustain the company’s long-term growth.
Phongsthorn Thavisin, president and chief executive of PTTEP, notes that PTTEP successfully concluded business expansion according to strategic directions in the first half of 2019. These include the PSC signing for block G1/61 (Erawan field) and block G2/61 (Bongkot field) in the Gulf of Thailand, the awarded exploration blocks in the United Arab Emirates and Malaysia, the acquisition of Murphy Oil Corporation in Malaysia that was completed on July 10 and the acquisition of 33.8-per-cent interests in APICO LLC from Tatex Thailand LLC.
PTTEP has therefore revised 2019 expenditure to take account of these business expansions. The estimated total expenditure for 2019 is US$3.577 billion (equivalent to Bt116.246 billion), up from the previous figure of US$3.256 billion. However, the newly estimated total expenditure excludes the acquisition cost of US$2.086 billion.
For the 5-year investment plan (2019-2023), PTTEP has allocated total expenditure of US$21.354 billion, up from US$16.105 billion.
Additionally, in accordance with the revised 5-year investment plan, PTTEP has also set a higher target of average petroleum sales volume in 2019 at 345,000 barrels of oil equivalent per day (BOED), representing an 8.5-per-cent increase from the 318,000 BOED planned last year. Compounding Annual Growth Rate (CAGR) for the 5-year period until 2023 is expected at around 7 per cent.
“Under the Expand strategy, PTTEP recently completed successful expansions by acquiring businesses both in Thailand and in other strategic investment areas as well as winning the bid for exploration blocks overseas as planned. Our focus will now be on the Execution strategy, especially the transitions of operations in the Erawan field and other acquired assets. This also includes accelerating exploration activities in our existing projects to drive PTTEP’s growth in the future.” Phongsthorn said.