PTTEP sets investment budget of USD 4,613 million for 2020 with 11% increase of sales volume target
23 Dec 2019
Yangon, Myanmar December 23, 2019 – PTT Exploration and Production Public Company Limited (PTTEP) announces its 5-year investment plan (2020-2024) to focus on investing in the legacy assets through ‘Execute’ strategy as well as ensuring seamless transitions of the winning blocks and recently acquired projects to increase production volume and sustain the company’s growth.
Phongsthorn Thavisin, PTTEP President and Chief Executive Officer, said the company has set aside total expenditure for PTTEP and its subsidiaries in 2020 of USD 4,613 million (equivalent to MMK 7,057,890 million), of which USD 2,647 million (equivalent to MMK 4,049,910 million) is Capital Expenditure (CAPEX) and USD 1,966 million (equivalent to MMK 3,007,980 million) is Operating Expenditure (OPEX). For 5-year investment plan (2020-2024), PTTEP allocates budget of USD 24,619 million (equivalent to MMK 37,667,070 million) with details as the followings.
Unit: USD Million
Unit: USD Million
|
|
2020 |
2021 |
2022 |
2023 |
2024 |
2020-2024 |
|
Capital Expenditure |
2,647 |
3,011 |
3,342 |
2,873 |
2,366 |
14,239 |
|
Operating Expenditure |
1,966 |
2,000 |
1,995 |
2,462 |
1,957 |
10,380 |
|
Total Expenditure |
4,613 |
5,011 |
5,337 |
5,335 |
4,323 |
24,619 |
In accordance with the investment plan, the expected compounding annual growth rate (CAGR) during 2020-2024 of average petroleum sales volumes from existing assets in 5-year period is around 6%, as per the details below:
Unit: Barrel of Oil Equivalent per Day
|
|
2020 |
2021 |
2022 |
2023 |
2024 |
|
Expected Average Petroleum Sales Volume |
388,000 |
403,000 |
450,000 |
464,000 |
467,000 |
“Based on the investment plan in 2020, PTTEP expects an increase of 11% of total petroleum sales volumes comparing to this year’s target, while the expected average volumes in the next 5 years are also growing steadily. The growth is a result from the successful Expand strategy, including the winning blocks and the acquisitions in our strategic areas - Thailand, Malaysia and the Middle East. Most of the 2020 investment budget will be allocated to pursue the Execute strategy in order to maintain volumes in major producing projects, to concentrate on the key development projects so as to start adding new production volumes as planned, and to accelerate exploration activities for future reserves addition and sustainable growth of PTTEP,” said Phongsthorn.
As mentioned above, PTTEP in 2020 will focus on the main business objectives as follows;
- Maintaining production plateau of the existing projects, including the S1 Project, Bongkot Project, the Arthit Project, the MTJDA Project and the Zawtika Project. Also, maintaining and ensuring the planned production volumes of recently acquired projects which are the Malaysia Project, Projects under Partex Holdings B.V., and G1/61 Project (Erawan) and G2/61 Project (Bongkot).
- Increasing future petroleum production volumes from the major development projects including Block H in Malaysia Project, the Mozambique Area 1 Project, and the Algeria Hassi Bir Rekaiz Project to start the production as planned and accelerating the plan to develop Sarawak SK 410B project in Malaysia after the successful discovery in this year in order to reach the Final Investment Decision (FID).
- Accelerating exploration activities, mainly in Malaysia and Myanmar, to enhance contingent resources for supporting long term growth.
PTTEP also focuses on innovation and technology development to support petroleum exploration, development and production activities. AI and Robotics Ventures Limited (ARV), PTTEP’s subsidiary, has been able to commercially launch services for both in E&P industry and non E&P industry such as an inspection drone, swarm drone, and Observation-class Autonomous Underwater Vehicle (OBS-ROV). In 2020, ARV will develop robotics for commercial use such as Inspection-class Autonomous Underwater Vehicle (IAUV), Subsea Flowline Control and Repair Robot (SFCR) and In-pipe Inspection Robot. There are more than 30 development projects planned for commercial purpose in ARV pipeline for the upcoming years.
