Myanmar Asset Press Release

22 January 2019, Yangon, Myanmar – PTT Exploration and Production Public Company Limited (PTTEP) announces its 5-year investment plan (2019-2023), to accomodate value-added creation from the legacy assets through exploration and production (E&P) activities and to support investment opportunities in prolific areas in order to sustain the company’s long term growth. Phongsthorn Thavisin, PTTEP Chief Executive Officer, announced that the company has set aside a total expenditure of USD 3,256 million (equivalent to MMK 5,007,728 million) for PTTEP and its subsidiaries in 2019, of which USD 1,840 million (equivalent to MMK 2,829,920 million) is Capital Expenditure (CAPEX) and USD 1,416 million (equivalent to MMK 2,177,808 million) is Operating Expenditure (OPEX). The company also targets the average petroleum sales volume at 318,000 barrels of oil equivalent per day (BOED).

The allocation of 2019 CAPEX is divided according to three main business objectives. The first is to maintain production plateau of existing projects in Thailand and the Republic of the Union of Myanmar with a CAPEX of USD 1,159 million (equivalent to MMK 1,782,542 million) allocated. These projects include the S1 Project, the Bongkot Project, the Arthit Project, the MTJDA Project and the Zawtika Project. Secondly, to increase petroleum reserves and future production, PTTEP has allocated a CAPEX of USD 490 million (equivalent to MMK 753,620 million) to support the Final Investment Decision (FID) of key development projects including the Mozambique Rovuma Offshore Area 1 Project, the Algeria Hassi Bir Rekaiz Project, the Vietnam B & 48/95 and the Vietnam 52/97 Project, and the Contract 4 (Ubon) Project. For the third objective, the company has allocated USD 191 million (equivalent to MMK 293,758 million) for exploration activities including projects in Myanmar and Malaysia to enhance contingent resources that support long term growth.

“From 2019 onwards, PTTEP will move forwards through a more active strategy as we maximize value of existing E&P assets by applying new technology to enhance operational efficiency, while maintaining competitive cost. We target to increase competitiveness through our business diversification plan, which focuses on investments in the Gas Value Chain business, robotics and artificial intelligence (AI) as well as renewable energy. This diversification would create long-term growth and sustainability for PTTEP,” said Phongsthorn.

In order to achieve the operational continuity as planned above, PTTEP has also allocated a budget of USD 16,105 million (equivalent to MMK 24,769,490 million) for its five-year operations (2019-2023) as per the details below:

Unit : USD Million

In accordance with its five-year investment plan, the expected average petroleum sales volumes per day from existing assets between 2019-2023 are as the following table. The figures, however, has yet to incorporate the results of the expiring petroleum concessions bidding for offshore blocks in the Gulf of Thailand No. G1/61 (Erawan) and G2/61 (Bongkot).

Unit: Barrel of Oil Equivalent per Day (BOED)