Thai PTTEP Targets $4.2bn Spend in 2021

Thai state-run PTT Exploration and Production Public Company (PTTEP) plans to spend $4.2bn next year on various projects worldwide, it said on December 2. Earlier this year, the company said it would reduce its 2020 capital expenditure by 15-20% from $4.61bn due to low oil prices.

Of next year's total spend, $2.6bn will be capital expenditure and $1.6bn operating expenditure. PTTEP forecasts average petroleum sales volume of 375,000 barrels of oil equivalent/day next year.

PTTEP has set aside $1.9bn for the S1, the Bongkot, and the Arthit projects in Thailand; its Malaysia project; and the Zawtika project in Myanmar, as well as for preparations for planned operations at the Erawan and Bongkot fields in Thailand. 

The company said it wants to advance the development of major projects including the Mozambique Area 1 project and the Algeria Hassi Bir Rekaiz project. It will also accelerate the development plans of Sarawak SK410B in Malaysia, where it made a successful petroleum discovery, in order to reach the final investment decision. Some $493mn of capex will go towards supporting such activities, PTTEP said.

In order to enhance contingent resources and support long-term growth, the company will invest $152mn, mainly in the drilling of exploration and appraisal wells in Malaysia and Mexico.

During the 2021-2025 period, PTTEP has plans to spend $23.6bn. The expected compounded annual growth rate of average petroleum sales volumes in the 5-year period is around 6%, the company said.

PTTEP said it is evaluating new business opportunities in the gas-to-power value chain in Myanmar where it can add value to its existing natural gas fields. It is also looking to scale up its AI and robotics venture and seek investment opportunities in renewable energy.