FRIDAY, March 29, 2024
nationthailand

PTTEP innovating for brighter future amid gloomy outlook

PTTEP innovating for brighter future amid gloomy outlook

NEW EQUIPMENT was recently installed at Sirikit oil field that aims to increase the recovery rate from 20 per cent to 30 per cent by 2031.

This is one of the innovative initiatives implemented by PTT Exploration and Production (PTTEP) which, like oil and gas exploration firms across the world, has been under huge pressure from a sharp decline in oil prices.
“Innovation has been an integral part of our vision, aside from green practices, as we strive to be a good corporate citizen,” said Kanit Sangwongwanich, executive vice president for the company’s Engineering and Development Group. “Our goal is to stay firmly in the business for the long term.”
The Sirikit oil field in Kamphaeng Phet province was selected as the pilot project for increased oil recovery. If the innovation is successful, it will be replicated at other production sites, which last year produced 373,830 barrels of oil equivalent per day. 
The move is also under a study to reduce the construction cost of drilling platforms, preferably to an average of US$20 million (Bt702 million) from $25-$30 million on average at present. 
Another area concerns seismic data processing – enhancing the success of exploration. 
Kanit said PTTEP had over the past five years been committed to advanced technology and spent roughly 3 per cent of its annual revenue on research and development.
The focus has become clearer in the past two years after oil prices nose-dived from a peak of $148 per barrel in 2008. In the interconnected world oil prices are influenced by a range of factors.
Last week, a stronger dollar and uncertainty over Britain’s vote to leave the EU troubled traders, pushing the price below $50 a barrel and further squeezing margins. At PTTEP, the average production cost is $34 per barrel on average. 
“For sustainable operations, we need to be competitive. Oil prices are unlikely to stay as high as before. Now, it is the lower-for-longer era,” he said. 
Innovation can be home-grown or through acquisition, he added. Self-developed innovations are shared with other players for social benefit. And with hundreds of engineers, PTTEP is earmarked to enhance its production efficiency, as well as place a greater focus on safety, health and environment. 
It is also collaborating with local universities like Chulalongkorn, Chiang Mai and Kasetsart, as well as local organisations like the National Science and Technology Development Agency. A research centre is planned that will focus on the upstream petroleum business. 
Some of the technology will be exhibited at the 10th International Petroleum Technology Conference. Kanit’s is the event’s programme committee co-chairman.
Hundreds of studies will be discussed at the conference in November, which seeks to promote knowledge sharing and scientific and technology dissemination on a global scale.
“Innovation is a key factor to survival. The key is all knowledge must be integrated to answer the corporate goal and we need to share the knowledge with others to uplift the industry. We cannot survive alone,” he said.
 
TAGS
nationthailand