SET-listed PTT Exploration and Production Plc (PTTEP) says it has yet to receive notification of a possible asset freeze and licence revocation of its operation in Indonesia.
President and chief executive Somporn Vongvuthipornchai said the company is closely monitoring the issue but has received no information from the Indonesian government on the matter.
He said PTTEP has one operating asset in Indonesia through an 11.5% holding in the Natuna Sea A project.
The project's total sales volume of natural gas is around 217 million standard cubic feet per day with 1,449 barrels of oil equivalent per day of crude representing a net contribution of 1% to PTTEP's total sales volume.
Reports out of Indonesia said the government was preparing to suspend the licences and assets of PTTEP after an oil spill that damaged fishing communities in the Timor Sea.
The move is expected to push the company to provide compensation for polluting the sea.
It would be the second time that PTTEP was threatened with licence revocation after an explosion at PTTEP's Montara oil rig west of Darwin, Australia in 2009 caused oil to spill into the Timor Sea for over two months. The case was inconclusive and PTTEP did not pay any compensation.
Analysts said they expected the issue to have only a minimal impact on PTTEP shares because no official seizure by the government has occurred.
"Even if the company's assets were seized by the Indonesian government, it would account for only a small proportion of the company's overall assets," said an analyst at Asia Plus Securities.
PTTEP also informed the Stock Exchange of Thailand yesterday that it had withdrawn its investment in the Umm Al-Quwain (UAQ) project in the United Arab Emirates.
Mr Somporn said PTTEP took back the 30% stake it held via a subsidiary, PTTEP FLNG Holding Co Ltd, in UAQ.
The remaining 70% is still held by another partner, CanEmir Petroleum UAQ Corporation.
In another development, PTTEP is close to finalising an investment decision on three petroleum resources, delayed from last year because of the complicated process of obtaining licences from local and central governments and unclear business models.
The three projects are the Ubon block in the Gulf of Thailand, Rovuma Offshore Area 1 in Mozambique and the Hassi Bir Rekaiz project in Algeria, said Pannalin Mahawongtikul, executive vice-president for finance and accounting.
The decision on the three projects would help the company refocus business plans for projects that are still in the exploration stage, she said.
The strategy also includes mergers and acquisitions (M&A) of projects in Asia-Pacific although most of the targeted firms are US companies, Ms Pannalin said. She said PTTEP is in talks for three or four M&A projects that are near the production stage. The negotiations are expected to be finalised early next year.
PTTEP has US$3.7 billion cash on hand, which is expected to increase to $4 billion next year.
The company posted a surge in net profit of $388 million in the first nine months of the year.
PTTEP shares closed yesterday on the SET at 91.25 baht, up 1.75 baht, in trade worth 2.7 billion baht.