By The Nation
PTTEP CEO Phongsthorn Thavisin said the company has set aside total expenditure for 2021 of US$4.196 billion (Bt132.174 billion) – of which Bt81.522 billion is capital expenditure and Bt50.652 billion is operating expenditure.
The company lists three key business objectives.
The first is to maintain production levels of the existing S1 Project, Bongkot Project, Arthit Project, Malaysia Project, and Zawtika Project, as well as prepare for planned operations of the G1/61 (Erawan field) and G2/61 Projects (Bongkot field). This plan will involve capital expenditure totalling Bt61.204 billion.
The second is to increasing future production volume by developing major projects including the Mozambique Area 1 Project and the Algeria Hassi Bir Rekaiz Project to start production as planned. The company will also accelerate development of Sarawak SK410B in Malaysia, where gas has been discovered, in order to reach the final investment decision (FID). Capital expenditure of Bt15.530 billion will support these activities.
The third is to accelerate exploration activities to enhance contingent resources for supporting long-term growth. Total capital expenditure for activities is Bt4.788 billion, mainly devoted to the drilling of exploration and appraisal wells in Malaysia and Mexico.
PTTEP’s five-year investment plan (2021-2025) has a budget of Bt734.845 billion. The five-year plan targets a CAGR for petroleum sales volumes of around 6 per cent.
Said Phongsthorn: "2021 is going to be another challenging year for the exploration and production industry due to uncertainty over the Covid-19 pandemic and global economic recovery, which continue to have a direct impact on energy demand and oil price. PTTEP has adjusted its organisational structure and business plan, especially reducing the unit cost, to strengthen operations and make the company resilient for the volatile market.”
He added that PTTEP had reviewed its five-year investment plan under an “Execute and Expand” strategy designed to serve domestic demand and ensure sustainable growth. “With a robust capital structure and operating cash flow, the company will be able to support the above investment plan and other business opportunities despite the effect of a low oil price environment," he said.
PTTEP said it is also evaluating new business opportunities in the gas-to-power value chain in Myanmar where the company says it can add value to its existing natural gas fields, as well as scale-up its AI & Robotics Venture (ARV), and seek investment opportunities in renewable energy.