abarrelfull wrote on 05 Mar 2014 12:12
Tags: asia myanmar pttep upstream
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Thailand's PTT Exploration and Production Plc (PTTEP) celebrates its Silver Jubilee in Myanmar's oil and gas industry with an announcement of a continued robust capital expenditure totaling US$ 3.3 billion in the republic over the next five years .
PTTEP president and CEO Tevin Vongvanich revealed the planned spending at the press conference today in Yangon to underscore the importance of Myanmar in the firm’s overall portfolio which ranks the country as the second largest investment venue after its Thai home turf.
Myanmar is the first international venture of PTTEP in the Southeast Asia. The company has placed its first step in this country 25 years ago. PTTEP has used its expertise and experience from the Gulf of Thailand to expedite its E&P activities in this country. Currently, the company is investing in 7 oil and gas projects here. For the next five years; the US$ 3.3 billion of capital expenditure has been allocated to ensure its commitment in this country. For 2014, Zawtika Project, the first gas project that PTTEP operates in the Myanmar, will come on stream in 2014 to secure both Myanmar and Thailand reliable petroleum supply to emphasize its goodwill in Myanmar.
PTTEP Strategic Plan
As E&P flagship under PTT Group in Thailand, PTTEP has been successful in its operations while also implementing changes to prepare for future challenges and sustainable growth with the long-term strategy to strike a balance among 3 directions: production (Big), reserves life (Long) and investment return (Strong). The company sets 2020 production aspiration to a more realistic target of 600,000 of barrels of oil equivalent per day (KBOED). The company has accelerated its exploration and production programs in order to maintain the production capacity, as well as to explore more reserves in the overseas projects. This is aimed at improving our proved reserves life (R/P) to 10 years while maintaining our ROCE to be in line with the E&P industrial average, and to retain our credit rating at the country level.
PTTEP also plans to expand its investment through merger and acquisition with the focus on producing or near-term producing assets in order to increase production and proved reserves. Moreover, the company plans to develop capabilities in various areas in the organization such as in technology, procedures, human resources and finance as enablers towards the company’s strategic goals.
Approximately 20% of US$16 billion CAPEX in 2014-2018 allocated to Myanmar
The capital expenditure (CAPEX) is strategically apportioned to support our operations and long term growth, which is categorized by the regions as follows: Southeast Asia has the largest portion with 74% of the five-year CAPEX, with Thailand at 52% while Myanmar ranks second at 20% or around US$ 3.3 billion. For Middle East & Africa, PTTEP will allocate 14% of CAPEX, followed by North America and Australasia with 11% and 1% respectively.
In 2014, PTTEP expected to increase its global sales volume to 325 KBOED, 11% increase from year 2013, which was 293 KBOED.
Cooperation in oil and gas for both Myanmar and Thailand
PTTEP has maintained commitment to the country's petroleum industry with increasing activities even though its first foray in Block F in 1989 was unsuccessful. Later, PTTEP has entered into a joint venture with Total and Petronas to produce gas on Yadana and Yetagun projects respectively. Currently, PTTEP has invested in 7 exploration and production projects and is also an operator of Zawtika, Myanmar M3, Myanmar M11, Myanmar PSC G & EP 2 and Myanmar MD-7 and MD-8 Projects.
In 2014, the coming-on-stream of Zawtika, a major gas field lying in the Gulf of Martaban, is PTTEP’s presence felt further from the perspective of it is the first field in Myanmar operated by the Thai out and the scale of its investment.
Zawtika will produce firstly at the rate of 300 million cubic feet per day (MMSCFD) and offer significant benefits for both Myanmar and Thailand. Both countries will share its gas production to meet their growing energy appetite and to support other development in their respective countries.
“We consider Myanmar as our second home. PTTEP plans to drill more appraisal wells in Zawtika project and carries out exploration activities in Myanmar M3 to provide natural gas to the domestic market. The company will also continue its exploration activities in Myanmar M11, Myanmar PSC G & EP 2 and Myanmar MD-7 and MD-8 projects for possible future development.”, Tevin said.
PTTEP's involvement in Myanmar oil and gas industry strictly adheres to good corporate governance, best ethical practice and transparency. The company also focuses on community developments in its petroleum operational areas. PTTEP is enthusiastic in expanding oil and gas business in Myanmar while improving quality of life of the communities.
"We do not compromise with any non-compliance matters,'' the president and chief executive officer emphasized, noting that PTTEP will strive to be a loyal long-term partner with Myanmar