PTTEP Reveals Business Direction for the Next 5 Years, with THB900 Billion in Expenditure

Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), revealed that the company has estimated total expenditures of PTTEP and its subsidiaries for 2022 at USD5,666 Million, of which USD3,217 Million is Capital Expenditure and the remaining USD2,449 Million is Operating Expenditure.

PTTEP will continue to operate under its sustainable development framework, which consists of three main components: High Performance Organization (HPO); Governance, Risk Management and Compliance (GRC); and Stakeholder Value Creation (SVC).

The 2022 Capital Expenditures can be categorized under the following key business objectives:

1. Maintain production plateau from key producing assets: A Capital Expenditure budget of USD2,494 Million was planned to maintain the production level of the existing projects including the S1, Malaysia, Oman Block 61 and Zawtika Project, as well as to carry out final preparation works for operations of the G1/61 (Erawan field) and G2/61 Projects (Bongkot field) which PTTEP will be the Operator.

2. Production volume growth from future projects: A Capital Expenditure budget of USD457 Million will be used to support three development projects – the Mozambique Area 1 Project, the Sarawak SK 410B Project in Malaysia, which made a successful petroleum discovery earlier this year, and the Algeria Hassi Bir Rekaiz Project–to achieve planned production start-up timelines.

3. Accelerate exploration activities for contingent resources: A Capital Expenditure budget  of USD262 Million will be used to expedite exploration activities to support long term growth. The main activities include the drilling of exploration and appraisal wells in Malaysia, United  Arab Emirates, and Mexico.

In order to achieve above plan, PTTEP would also like to announce its Five-Year Investment Plan (2022–2026) per the table below:

SOURCE: The Stock Exchange of Thailand 

PTTEP expects its Five-Year Investment plan to support a 5-year Compounded Annual  Growth Rate (CAGR) for sales volume of 5%, per the details below:

SOURCE: The Stock Exchange of Thailand

PTTEP emphasized that it has put priority in driving the sustainable petroleum exploration and production business sustainably, as well as expansion into new businesses, for example, AI & Robotics Ventures, the study and development of Gas to Power projects and other renewables, and the commercialization of PTTEP’s in-house technology, while also ensure readiness of the company for the energy transition into low carbon futures. These are conducted in parallel with our social responsibility projects in the areas around PTTEP’s operation base, for the sustained value creation to all stakeholders.