Thai PTTEP Swings to Profit in Q3

Thailand’s PTT Exploration and Production (PTTEP) October 25 reported a Q3 2018 net profit of $315mn thanks to higher oil prices and increased sales volume. The company had reported a loss of $264mn in the same quarter last year.

Company’s average realised price during the quarter was $47.67/boe compared with $38.78/boe in the same period last year. Sales volume increased to 304,940 boe/d from 298,139 boe/d in the same quarter of 2017.

Phongsthorn Thavisin, PTTEP CEO, said “Strong operating performance reflected the success of our commitments in investment strategy to refocus our key strategic areas like southeast Asia. Increasing stakes in the Bongkot field, our core producing project, enabled higher sale volumes with immediate cash flow.”

In June, Anglo-Dutch major Shell and Thai Energy Company announced the completion of the sale of their 22.2222% interest in the Bongkot field and adjoining acreage offshore Thailand to PTTEP for a transaction value of $750mn.

PTTEP has bid for Bongkot and Erawan gas fields. It has opted to bid alone for Bongkot, while has partnered with Mubadala Petroleum for Erawan. The bid results are expected to be announced later this year, the company said.

PTTEP and its partners are looking to accelerate the development of the Mozambique Rovuma offshore Area 1. Mozambique LNG, the jointly owned sales entity of the Mozambique offshore Area 1 co-venturers, final investment decision (FID) is expected in H1 2019 while the first production is anticipated to commence in 2023, PTTEP said.  Earlier this year the project secured a long-term LNG SPA with EDF to supply 1.2mn mt/yr of LNG.