News and Announcement
PTTEP reveals quarterly update for the third quarter of 2022
25 Oct 2022
Bangkok, 25 October 2022 – PTTEP unveils its quarterly performance for the third quarter of 2022, as it followed the path towards a low-carbon organization and sustainable growth, as well as the progress of the execution of G1/61 Project development plan in ramping up natural gas production for Thai people and the country. The company provides remittance payment approximately THB 70,000 million for national development.
Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), said that under the company’s ambitious target to achieve Net Zero GHG Emissions by 2050 and become a low-carbon organization, PTTEP has followed through the EP Net Zero 2050 concept to reduce greenhouse gases, and Carbon Capture and Storage (CCS) project is the major enabler for this achievement. PTTEP’s first CCS project at Arthit gas field in the Gulf of Thailand is currently under the study and development phase. Additionally, the company has also joined hand with domestic and international partners to study the potential development of CCS to support emissions reduction emitted by other industries.
Besides, PTTEP has collaborated with the PTT Innovation Institute, the National Science and Technology Development Agency (NSTDA), Chulalongkorn University and Mahidol University in turning flare gas into carbon nanotubes (CNTs) as part of Carbon Capture and Utilization (CCU) project. CNTs are known as future materials applicable for the production of various components including composite materials, energy storage, and electrical equipment. The engineering design for CNT production test is underway, for the execution at the pilot plant planned for S1 Project in the next 2 years.
PTTEP is eyeing to offset carbon footprint by implementing the mangrove reforestation project in collaboration with the Department of Marine and Coastal Resources with an aim to achieve 45,000 rai by 2030. The company has planted 1,000 rai since 2021 and will begin to plant another 4,000 rai in 2022. The reforestation will continue at a pace of 5,000 rai per annum from 2023 to 2030. These mangrove forests will be maintained by the company up until 2039.
Operating results for the third quarter of 2022
PTTEP’s total revenue was at USD 2,617 million (equivalent to THB 95,292 million), increasing by USD 148 million compared to USD 2,469 million (equivalent to THB 84,955 million) in the second quarter of 2022. The average sales volume improved to 478,323 barrels of oil equivalent per day (BOED), up from 465,459 BOED in the previous quarter. The increase was primarily from G1/61 Project after assuming operatorship in late of April 2022 and the Malaysia–Thailand Joint Development Area (MTJDA) Project following the company’s plan to ramp up production volume to serve the domestic demand. However, the average selling price dropped to USD 53.68 per barrel of oil equivalent (BOE) from USD 55.61 per BOE due to a decline in global crude oil price. The company also reported oil price hedging gain of USD 94 million (equivalent to THB 3,415 million) in this quarter.
With all aforementioned, PTTEP recorded net profit for the third quarter of this year at USD 664 million (equivalent to THB 24,172 million), an increment of USD 64 million when compared with USD 600 million (equivalent to THB 20,600 million) in the past quarter. Meanwhile, Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) margin stood at 76%.
Remittance for country development
For the 9-month period of 2022, over approximately THB 70,000 million paid by PTTEP for company’s income tax, royalties and other remuneration. This strongly supports national development in various areas such as community, education, and research & development (R&D) funds.
Achievements under the “Expand” strategy
For the recent achievements under the “Expand” strategy in the Middle East, one of the strategic areas, PTTEP made a significant gas discovery in Abu Dhabi Offshore Block 2, paving the way to establishing a strong presence in the United Arab Emirates (UAE). The Middle East has become more important to PTTEP considering the increasing sales volume contributed from the region since the acquisition of Oman Block 61 in March 2021.
Progress on the development of G1/61 Project to accelerate gas production output
After PTTEP won bid for G1/61 Project (Erawan, Platong, Satun and Funan fields), as agreed with the authority, the company prepared all transition works 2 years in advance before taking operatorship to ensure smooth operation and to maintain the gas production rate at acceptable level. However, the previous operator did not allow PTTEP to access the field, putting the project about 2 years behind its original plan. In addition, the absence of continuous development and drilling activity by the previous operator also caused the significant decline in the production rate. PTTEP has fully aware of this issue, therefore, the company has adjusted the work plan to accelerate gas production output and minimize the impacts on the country.
Throughout 6 months after assuming operatorship in April 2022, PTTEP has completed the installation of 4 wellhead platforms and drilled 10 production wells. The installation of 4 more wellhead platforms, subsea pipelines, as well as to secure more rig capacity to perform the drilling activities of approximately 70 production wells are underway with target for completion by the end of this year. The company is also constructing 4 additional wellhead platforms as part of its efforts to ramp up production volume from G1/61 Project and it shows faster-than-expected progress.
“Accelerating the development of G1/61 project is one of PTTEP’s top priorities. We are always putting our best efforts and constantly searching for possible solutions to increase the natural gas production capacity for the benefit of Thai people and to ensure the national energy security,” Mr. Montri said.
While fast tracking the development of G1/61 Project, PTTEP has raised gas production at Bongkot field, Arthit field and the Malaysia-Thailand Joint Development Area (MTJDA) Project by approximately 200-250 million cubic feet per day, in support of domestic consumption and national energy security.
Technological developmentRegarding the progress of technological development, Rovula (Thailand) Company Limited, a business unit of ARV which is a subsidiary of PTTEP, successfully developed Nautilus Robot in collaboration with partners. A world-first subsea pipeline repair robot is now ready for commercial services on the global scale. It can perform tasks at depth of up to 150 meters, considered hazardous for human. The robot can enhance the subsea performance while saving expenses by more than 40%.
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