Myanmar Asset Press Release
PTTEP raises sales volume target and revises 5-year investment
25 July 2019, Yangon, Myanmar – PTT Exploration and Production Public Company Limited (PTTEP) revises its 5-year investment plan (2019-2023) and the sales volume target, to accommodate value-added creation from the recently acquired businesses as well as the awarded oil and gas blocks in Thailand and overseas. The next move is to 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 Officer of PTTEP reveals that in the first half of 2019, PTTEP has successfully concluded business expansion according to strategic directions. 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 (UAE) and Malaysia, the acquisition of Murphy Oil Corporation in Malaysia that was just completed on July 10, 2019, and the acquisition of 33.8% interests in APICO LLC from Tatex Thailand LLC.
Therefore, PTTEP has revised 2019 expenditure to align with the business expansions as mentioned above. The estimated total expenditure 2019 is USD 3,577 million (equivalent to MMK 5,437,040 million), up from the previous figure of USD 3,256 million (equivalent to MMK 5,007,728 million). However, the newly estimated total expenditure excludes the acquisition cost of USD 2,086 million (equivalent to MMK 3,170,720 million).
For 5-year investment plan (2019-2023), PTTEP has allocated total expenditure of USD 21,354 million (equivalent to MMK 32,458,080 million), higher from USD 16,105 million (equivalent to MMK 24,479,600 million) with details as per the table below:
Unit: USD Million
| 2019 | 2020 | 2021 | 2022 | 2023 | 2019-2023 | |
|---|---|---|---|---|---|---|
| Capital Expenditure | 1,948 | 2,472 | 2,817 | 2,945 | 2,477 | 12,659 |
| Operating Expenditure | 1,629 | 1,592 | 1,556 | 2,095 | 1,823 | 8,695 |
| Total Expenditure | 3,577 | 4,064 | 4,373 | 5,040 | 4,300 | 21,354 |
* Exclude acquisition cost of USD 2,086 million
In accordance with the revised 5-year investment plan, PTTEP also sets a higher target of the average petroleum sales volume in 2019 at 345,000 barrels of oil equivalent per day (BOED), representing an 8.5% increase from 318,000 BOED planned in last year. Compounding Annual Growth Rate (CAGR) for 5-year period until 2023 is expected at around 7% with the details as follows:
Unit: Barrel of Oil Equivalent per Day (BOED)
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Expected Average Petroleum Sales Volume | 345,000 | 365,000 | 380,000 | 409,000 | 437,000 |
“Under the Expand strategy, PTTEP recently has completed successful expansions by acquiring businesses both in Thailand and in other strategic investment areas as well as winning the bid of exploration blocks in overseas as planned. Our focus will now be on the Execution strategy, especially the transitions of operations in Erawan field and other acquired assets. This also includes accelerating the exploration activities in our existing projects including Zawtika project in Myanmar to drive PTTEP’s growth in the future.” Phongsthorn said.