CEO Statement

Phongsthorn Thavisin
Chief Executive Officer

PTT Exploration and Production Public Company Limited (PTTEP) has vowed to operate the petroleum exploration and production business in a sustainable manner since taking up its mission to ensure national energy security. While supporting economic and social development, PTTEP takes into consideration environmental impacts as well as the shared value and mutual prosperity of the Company and stakeholders under our vision to be "Energy Partner of Choice". PTTEP witnessed huge challenges in 2020, especially the outbreak of new coronavirus (COVID-19) which remains a global issue. In response to the outbreak, we launched a New Normal Transformation work plan which involves, for instance, a new way of working, efficiency enhancement for information technology necessary to support full-scale online meetings and training, and LIVE broadcast of internal communications for the latest updates and releases of important messages. All are to ensure employees that we all would ride through this crisis. As a result, we successfully carried on our business activities and achieved 2020 key milestones. PTTEP also stayed beside all Thais in fighting the disease: by integrating our knowledge and technology, we created negative pressure patient transfers and mobile negative pressure boxes that helped save medical personnel and reduce the spread of the virus. Aside, allocated more than 44 million THB as direct and indirect donations to hospitals, educational institutions and government agencies in Thailand and abroad. Another grave challenge in 2020 concerned oil prices which plunged below 20 USD per barrel and oil futures recorded negative prices for the first time. The situation prompted the Company to find ways to reduce expenses and increase revenue as well as work efficiency for our survival through the oil price volatility crisis, greater competitiveness and sustainable growth. The other challenges, like energy transition, growth trend of renewable energy, rapid technological changes, global warming and climate change, remain points of concern and the organization has continually considered those as part of our strategic planning.

Amid these challenges, PTTEP adheres to the sustainable development framework which comprises 3 main components namely: High Performance Organization (HPO) or "Be Smart", Governance, Risk Management and Compliance (GRC) or "Be Good", and Stakeholder Value Creation (SVC) or "Be Responsible". The strategies and targets under each component to be achieved in 2030 are clearly stated, corresponding with the United Nations Sustainable Development Goals (SDGs). The Board of Directors also endorsed the SD Statement in 2020 to communicate with all PTTEP personnel and our stakeholders and be committed towards sustainability.

PTTEP is growing business through the "Execute and Expand" strategy, mainly to enhance competitiveness, support sustainable growth and prepare for future challenges in the energy industry. In 2020, PTTEP achieved its business plans: for instance, cost of production per unit was continually brought down to a competitive level thanks to digital technology and enhanced work efficiency; through collaboration with business partners, PTTEP won the bid for Block Offshore 3 field, off the coast of the United Arab Emirates and signed Exploration and Production Sharing Agreement (EPSA) with Oman's Ministry of Oil and Gas (MOG) for exploration and production rights of Oman Onshore Block12; PTTEP received the Myanmar government's approval for its gas-to-power project. For business sustainability, PTTEP also proceeded with its expansion into AI and Robotics and conducted a feasibility study on electricity generation and alternative energy investment in Southeast Asia.

Aside from operational targets and strategies, PTTEP gives importance to Safety, Security, Health and Environment (SSHE) to ensure employees, contractors and stakeholders of the Company's safety standards under Target Zero, or zero work-related accidents. PTTEP has run a regular survey on the organization's safety culture. The level, according to the 2020 survey, went up to 4.36 from a score of 5, showing employees' understanding in operational safety. It also corresponded with a decline in Total Recordable Injury Rate (TRIR) including oil and chemical spillage which both are in the leading position against the overall performance of the International Association of Oil and Gas Producers (IOGP).

On Governance, Risk Management and Compliance, PTTEP pushes forward its "Smart Assurance and GRC in Common Sense" scheme, setting sight to be a role model on GRC for listed companies in Thailand and raise GRC Maturity Level to 5, or top of the scale. In 2020, PTTEP put in place the GRC assurance process and ensured that all new projects, suppliers and contractors exercise under the same GRC standards.

For sustainable growth in all dimensions, PTTEP emphasizes the creation of long-term values for stakeholders through 3 main strategies, namely Greenhouse Gas Reduction, Circular Model for E&P and Ocean for Life. All have clear long-term targets (2030) to cultivate a work culture that promotes natural resources conservation, environmental rehabilitation, as well as community and social development. In 2020, several activities / initiatives have been launched to support the 3 strategies: for example, a study on and implementation of new technologies to reduce greenhouse gas intensity; zero hazardous waste to landfill; collaboration with government agencies, educational institutions and private organizations in pushing forward resources and marine ecosystem conservation and rehabilitation.

Thanks to our continuous commitment on sustainable development, in 2020, PTTEP was selected as a member of the Dow Jones Sustainability Indices (DJSI) in the DJSI World Oil and Gas Upstream & Integrated Industry for the 7th consecutive year and FTSE4Good Index Series for the 5th consecutive year. In the national level, PTTEP was included in Stock Exchange of Thailand's Thailand Sustainability Investment Index (THSI) for the 5th consecutive year and was awarded the National Anti-Corruption Committee's NACC Integrity Award for the 2nd consecutive year. Additionally, PTTEP has been granted 21 social development awards from various platforms both domestically and internationally. These achievements reflect the Company's commitment towards sustainable development through collaboration with all partners as guided by our "Energy Partner of Choice" vision.

PTTEP also upholds the United Nations Global Compact (UNGC)'s 10 principles as an Advanced participant and it plays a 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 Thailand Responsible Business Network (TRBN).

Though several parts of our operations experienced challenges in 2020, I'm confident that our capabilities, ability to appropriately adapt to these challenges and commitment to sustainability in all dimensions will lead us through this crisis. Lastly, I would like to thank shareholders, business partners, contractors and suppliers, relevant government agencies, community and society as well as the Board of Directors, management and employees for their continuous confidence, support and participation in PTTEP's endeavor to achieve sustainability.