SET Notification

Five – Year Investment Plan (Year 2019 – 2023)

18 December 2018

 
PTTEP 13061/00-11049/2018                                                                               

Investor Relations
Tel. +66(0) 2537 7171, +66(0) 2537 5843
 
18 December 2018
 
President
The Stock Exchange of Thailand
93 Ratchadapisek Road, Din Daeng
Bangkok 10400
 
Dear Sir,
 
Subject:           Five – Year Investment Plan (Year 2019 – 2023)
 
PTT Exploration and Production Public Company Limited (PTTEP) would like to announce that the estimated total expenditure for PTTEP and its subsidiaries in 2019 is USD 3,256 Million, of which USD 1,840 Million is Capital Expenditure and the remaining USD 1,416 Million is Operating Expenditure.
The following provides a breakdown of the 2019 Capital Expenditures by main business objectives:
  1. Maintain production plateau: A Capital Expenditure budget of USD 1,159 Million will be used to maintain the production level of the existing projects in Thailand and in the Republic of the Union of Myanmar (Myanmar) including the S1 Project, the Bongkot Project, the Arthit Project, the MTJDA Project and the Zawtika Project
  2. Deliver project sanction: A Capital Expenditure budget of USD 490 Million will be used 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 Block B & 48/95 and Block 52/97 Projects, and the Contract 4 (Ubon) Project in order to increase petroleum reserves and future production
  3. Discover resources: A Capital Expenditure budget of USD 191 Million will be used to accelerate exploration activities to enhance contingent resources for supporting long term growth. The main activities include drilling of exploration and appraisal wells in Myanmar and Malaysia  

In order to achieve the operational continuity as planned above, PTTEP would also like to announce its Five-Year Investment Plan (2019 – 2023) as per the table below:    

                                                                                                                                                 Unit: USD Million                                  

 

2019

2020

2021

2022

2023

2019-2023

Capital Expenditure                      

1,840

1,667

2,223

1,927

1,653

9,310

Operating Expenditure                      

1,416

1,279

1,256

1,633

1,211

6,795

Total Expenditure              

3,256

2,946

3,479

3,560

2,864

16,105

 
In accordance with the Five-Year Investment Plan, the expected average petroleum sales volume per day from existing assets during 2019-2023 are as follows:

                                                                                       Unit: Thousands Barrel of Oil Equivalent per Day (KBOED)

 

2019

2020

2021

2022

2023

Expected Average Petroleum Sales Volume              

318

325

326

280

235

 
Please also be informed that the result of Thailand Petroleum Bidding Round 2018 for offshore Exploration Blocks in the Gulf of Thailand No. G1/61 (Erawan field) and G2/61 (Bongkot field), announced on 13 December 2018, is not yet incorporated in the above Five-Year Investment Plan and expected average petroleum sales volume.

PTTEP commits to maintain cost competitiveness, maximize value of existing assets, ensure production continuity in natural gas supply and capture new investment opportunities in prolific areas. Furthermore, to be agile amidst the new industry landscape, PTTEP has transformed its organization and adopted technology and innovation to enhance its efficiency. PTTEP also evaluates new business opportunities such as Gas Value Chain business and renewable energy for sustainable growth.
 
Sincerely yours,
 
Phongsthorn Thavisin
 
Phongsthorn Thavisin
Chief Executive Officer