PTTEP Could Delay Some Projects
Thai state-run PTTEP is ready to be flexible with its investment plan and could delay some projects to cope with the current global oil price crisis and the spread of coronavirus (Covid-19), it said April 2 in a statement without specifying the projects.
PTTEP CEO Phongsthorn Thavisin said the company is mulling revising its investment plan such as maximising the efficiency of capital management and postponing drilling plans of selected projects. “Even though some plans have to be revisited, our utmost priority is to ensure no impact on our future operations and no interruptions to the energy supply of the country,” he said.
The investments in G1/61 (the Erawan field) and G2/61 (the Bongkot field) will continue as planned in order to deliver a combined natural gas volume of 1,500mn ft3/day as per the production sharing contracts starting in 2022-2023, the company said. PTTEP has set a planned expenditure for 2020 of $4.61bn.
PTTEP has revised its sales volume target for this year. The average sales volume previously targeted for this year at 388,000 barrels of oil equivalent/day is expected to decrease by less than 5% as sales volume of natural gas, which represents the majority of company’s products, has already been secured in accordance with the sales agreement, it said.
“On the average selling price front, crude oil sales, which accounts for roughly 30% of total sales volume, will be directly impacted by the oil price volatility although with insulation from partial crude price hedges in place. Meanwhile, natural gas prices of several projects have already been determined in accordance with the gas sales agreements. However, if the low oil price environment is prolonged, it will likely continue impacting PTTEP in future periods,” the company said.