PTTEP retains employees, plans to increase sales

PTTEP retains employees, plans to increase sales

Thiti: Reset goals during low oil price
Thiti: Reset goals during low oil price

PTT Exploration and Production Plc (PTTEP) will not be cutting staff numbers even though global oil prices have remained low for about two years.

In fact, the SET-listed upstream petroleum company appears to be bucking industry trends by planning to increase sales volume -- the main reason for staff retention.

The company is developing oil and gas blocks that are due to start operation within the next 10 years.

Thiti Mekavichai, executive vice-president of human resources and business services, said PTTEP expects to increase its average oil and gas sales volume to 500 kilobarrels of oil equivalent per day (Kboed), up from 323 Kboed this year.

"The low oil price may have had a negative impact on us, but it also gave us time to reset our business goals," said Mr Thiti.

He said PTTEP has worked very hard to tap into profit during the time when global oil prices rose above US$100 a barrel.

During the oil price collapse in the past two years, the company has set its goals for the short and long terms of 5-10 years, including the number of staff and investment plans.

As a result, the number of employees remains at 4,200, the same figure for the past two years, when oil prices were high. Some 40% are new generation staff who are expected to work overseas.

In 2015, it allocated 300 million baht for staff training courses and the same courses were held this year.

The budget for training was excluded from the research and development budget, which is set at an average of 3-6% of net profit each year.

The company also plans to reduce greenhouse gas emissions in its production process by 20% by 2020 by using remotely operated vehicles (ROVs) and drones.

The plan to deploy drones and ROVs at its sites will also help save costs and prevent accidents during inspection work at offshore petroleum sites.

Data processed by machines also produces less errors compared with human calculations, so the company can expect more precise data from ROVs and drones, he said.

The major petroleum resources of PTTEP are small reserves in the Gulf of Thailand including the Arthit and Bongkot fields. The firm utilises a new technology called minimum facility platform (MFP), using bundling to maximise output from several small wells.

MFP was started in 2010 and 30 platforms using the technology are currently in operation. Another 17 units are in development.

PTTEP shares closed yesterday on the Stock Exchange of Thailand at 82.50 baht, down 1.75 baht, in trade worth 766 million baht.

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