CEO Statement

Montri Rawanchaikul
Chief Executive Officer

Even though PTTEP has been facing numerous business challenges caused by external factors like the ongoing coronavirus outbreak (COVID-19), oil price volatility, disruptive technology and innovation or even the energy transition in 2021, the Company remains committed to continuous improvement and adaptation to ensure national energy security while maintaining the right balance of social, economic and environmental safeguard as guided by our Sustainable Development Framework. The framework comprises 3 main components namely: 1) High Performance Organization (HPO) or "Be Smart"; 2) Governance, Risk Management and Compliance (GRC) or "Be Good"; and Stakeholder Value Creation (SVC) or "Be Responsible". It is being executed under the strategic direction of Execute & Expand towards Energy Transition and aligned with the United Nations Sustainable Development Goals (UN SDGs) with the ultimate goal to deliver sustainable values to all stakeholders (From We to World) following its vision of "Energy Partner of Choice".

Under the challenging circumstances, PTTEP operates its business as a Cautious Diversified Player, emphasizing on both petroleum exploration and production business (Core E&P) and diversification to new businesses (Beyond E&P), leveraging the Company's knowledge and technology, which include power business from natural gas, renewable energy and future energy. In 2021, PTTEP successfully strengthened its core E&P business by achieving the targets in maintaining production plateau and increasing petroleum reserves through its existing projects and projects under the development phase as well as business expansion in its strategic areas to increase future production volumes. Its production volumes rose to a record-high at 490,000 barrels of oil equivalent per day as a result from the faster-than-expected production of Malaysia Asset's Block H together with its successful acquisition of participating interest in Oman's Block 61 early last year. In addition, PTTEP has continually made additional petroleum discoveries in Malaysia and expanded its investments in strategic locations such as the joint venture in exploration blocks in the United Arab Emirates. In light of PTTEP's success in new businesses (Beyond E&P) which aims to strengthen the Company's long-term growth, AI and Robotics Ventures Company Limited (ARV), a subsidiary of PTTEP, established 4 subsidiaries in 2021 to support future business expansion in robotics and artificial intelligence.

Beyond that, from PTTEP’s strong commitment to 25% Greenhouse Gas (GHG) intensity reduction by 2030 from 2012 base year, in 2021, PTTEP has achieved more than 24% of the GHG intensity reduction, with 2.7 million tonnes of CO2 equivalent reduction in accumulation. PTTEP has confidence that our target of 25% GHG intensity reduction can be achieved within 2022.

To respond to the direction of the world in dealing with climate change and support Thailand’s goals to achieve Carbon Neutrality and Net Zero Greenhouse Gas (GHG) Emissions as committed at the 26th United Nations Climate Change Conference of the Parties (COP26), PTTEP has set the target to achieve Net Zero GHG Emissions by 2050 for E&P business covering scope 1 and scope 2 under PTTEP’s operational control through “EP Net Zero 2050” pathway. PTTEP also set the targets of reduction of greenhouse gas emissions intensity by 30% by 2030 and 50% by 2040 from 2020 base year. The Company has continued its concrete implementation of various greenhouse gas management projects such as flare gas recovery and utilization, energy efficiency improvement, adoption of renewable energy in operations and feasibility studies to apply the Carbon Capture, Utilization and Storage (CCUS) technology for offshore operations as well as greenhouse gas offsetting projects like forestation and carbon credits purchasing to offset the rest of the greenhouse gas emissions.

Aside from operational targets and strategies, PTTEP has given priority to Safety, Security, Health and Environment (SSHE) to ensure safe working conditions for employees and contractors. In order to achieve its safety target zero, PTTEP has put the SSHE Management System or SSHE MS in place for strict compliance and continually established SSHE leadership at all levels, resulting in PTTEP's above-average safety performance level against the average rate of the International Association of Oil and Gas Producers (IOGP). Targeting to continuously improve the overall SSHE performance, all business units have put collective efforts in developing short-term and long-term plans (SSHE Roadmap) as a guideline for effective SSHE implementation.

Also underscored is Governance, Risk Management and Compliance as PTTEP believes that it will be the Company's license to operate and support the business mission while creating public confidence and acceptance from relevant stakeholders. Thus, the Company has driven the Smart Assurance and GRC in Common Sense strategies with aspiration to become a GRC role model among Thai listed companies and raise GRC Maturity to Level 5 or the highest level. In 2021, "#GRC, Good and Cautious" was the key message repetitively communicated with employees: "Good" refers to compliance with governance principles and business ethics as well as relevant laws and regulations while "Cautious" concerns risk management and appropriate internal control. PTTEP had put in place the GRC assurance process and ensured that it was deployed to all new projects along with suppliers and contractors to ensure the same standard.

In view of environmental conservation and rehabilitation as well as community and social stewardship, in 2021, PTTEP implemented "Circular Model for E&P" and "Ocean for Life" strategies through key projects such as Arthit Asset's Wellhead Platform Topside Relocation, Recycled Drill Cuttings Road at PTTEP's Rapid Scale-up Center (RASC), Sand to Zeolite for Zawtika Asset, Baseline Study of Microplastics in the Gulf of Thailand, Ocean Health & Biodiversity Monitoring: Coral Bleaching Baseline, Aquatic Animal Hatchery Learning Center, Mangrove Forestation including several social development projects.

Besides, PTTEP has valued and provided social contribution in several other dimensions such as donating medical equipment from its innovations jointly developed by PTTEP, ARV and partners; providing continued financial supports and supplies to hospitals in Thailand and other countries, worth more than THB 150 million, to support the fight against coronavirus (COVID-19) since 2020. In addition, the Company supported the Restart Thailand Project as a hiring program to provide a platform for new graduates to develop job skills and put knowledge into practice amid the low season of Thailand's labour market.

Thanks to its continuous commitment on sustainable development, PTTEP received awards and recognitions from various domestic and international institutes including ASIAN ESG Award for the 9th consecutive year. As well, PTTEP was selected as a member of Dow Jones Sustainability Indices (DJSI) for the 8th consecutive year and FTSE4Good Index Series for the 6th consecutive year. In the national level, PTTEP received Best Sustainability Awards in the category of Sustainability Excellence for the 2nd consecutive year at SET Awards 2021. In addition, PTTEP was included in Thailand Sustainability Investment (THSI) for the 6th year. Also received are the National Anti-Corruption Committee's NACC Integrity Award and the 2021 Role Model Organization on Human Rights in State Enterprise sector from the Rights and Liberties Protection Department for the 3rd consecutive year including a number of international awards on social and environmental programs. These awards reflect the Company's commitment to capability improvement in all dimensions for sustainable development, through collaboration with all stakeholders as guided by its vision of "Energy Partner of Choice".

PTTEP also upholds the United Nations Global Compact (UNGC)'s 10 principles as an Advanced participant and takes part in driving Thailand's private sector towards sustainability through collaboration with other local organizations such as Global Compact Network Thailand (GCNT), Thailand Business Council for Sustainable Development (TBCSD) and Thai Listed Companies Association's ESG Network.

The journey towards sustainability is not easy, but I'm convinced that with the unity of PTTEP personnel under "One Team One Goal" mindset coupled with strong supports from shareholders, business partners, contractors, suppliers, relevant government agencies, community and society to propel our missions under Sustainable Development Framework, we can together achieve our goal and deliver a better future to the next generation.