PTT Exploration and Production : PTTEP sets 5-year investment budget of USD 23,637 million with 6% increase of sales volume tar

Bangkok, December 2, 2020 - PTT Exploration and Production Public Company Limited (PTTEP) announces 2021 investment plan and 5-year investment plan (2021-2025) aimed to maintain production volumes from major assets, accelerate key development projects as well as capture new business opportunities for long-term growth, targeting a 5-year Compounded Annual Growth Rate (CAGR) for sales volume of 6%.

Mr. Phongsthorn Thavisin, Chief Executive Officer of PTTEP, said the company has set aside total expenditure for PTTEP and its subsidiaries for 2021 at USD 4,196 million (equivalent to THB 132,174 million), of which USD 2,588 million (equivalent to THB 81,522 million) is allocated for Capital Expenditure (CAPEX) and USD 1,608 million (equivalent to THB 50,652 million) is for Operating Expenditure (OPEX). The key business objectives are as follows;

1. Maintaining production plateau of the existing projects including the S1 Project, the Bongkot Project, the Arthit Project, the Malaysia Project, the Zawtika Project, as well as preparing for planned operations of the G1/61 (Erawan field) and G2/61 Projects (Bongkot field). CAPEX allocation for this plan is totaled USD 1,943 Million (equivalent to THB 61,204 million).
2. Increasing future production volume by advancing the development of major projects including the Mozambique Area 1 Project and the Algeria Hassi Bir Rekaiz Project to start the production as planned. The company will also accelerate development plans of Sarawak SK410B in Malaysia, which made a successful petroleum discovery, in order to reach the Final Investment Decision (FID). CAPEX worth USD 493 million (equivalent to THB 15,530 million) is allocated to support such activities.
3. Accelerating exploration activities to enhance contingent resources for supporting long term growth. Total CAPEX set to expedite these activities is USD 152 million (equivalent to THB 4,788 million), which main activities include the drilling of exploration and appraisal wells in Malaysia and Mexico.

For 5-year investment plan (2021-2025), PTTEP allocates budget of USD 23,637 million (equivalent to THB 734,845 million) with details as the followings.

In accordance with the investment plan, the expected compounded annual growth rate (CAGR) of average petroleum sales volumes in 5-year period is around 6%, as per the details below:

'2021 is going to be another challenging year for the E&P industry due to the uncertainty of Covid-19 pandemic and global economic recovery which continue to have a direct impact on energy demand and oil price. PTTEP has adjusted its organizational structure and business plan especially reducing the unit cost to strengthen the operation and make the company resilient for the volatile market. This year, PTTEP has reviewed its 5-year investment plan, following the key strategy 'Execute and Expand' to carry out our mission in serving the domestic demand and ensure the sustainable growth. With a robust capital structure and operating cash flow, the company will be able to support the above investment plan and other business opportunities despite the effect of low oil price environment.' said Mr. Phongsthorn.

Furthermore, aiming to be resilient in the evolving E&P landscape, PTTEP evaluates new business opportunities in the Gas-to-Power value chain in Myanmar where PTTEP can add value to its existing natural gas fields, as well as to scale-up the AI & Robotics Venture (ARV), and seek for investment opportunities in renewable energy.

For more information, please contact Media Management Section
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The information, statements, forecasts and projections contained herein reflect the Company's current views with respect to future events and financial performance. These views are based on assumptions subject to various risks. No assurance is given that these future events will occur, or that the Company's future assumptions are correct. Actual results may differ materially from those projected.