PTT Exploration and Production Plc (PTTEP), Thailand's only SET-listed upstream petroleum firm, says it will review its five-year capital expenditure plan for 2015-19 because of declining oil prices.
Chief executive Tevin Vongvanich said global crude prices yesterday hit their lowest level since 2009 and were expected to fall further, forcing the company to revise its plan at a time when no one can predict when prices will hit bottom.
Last year PTTEP estimated capital expenditure during 2015-19 at US$24 billion, with an average crude price of $104 a barrel.
That was based on expectations that the Dubai crude price would average $70 a barrel. But prices continue to fall, piercing the $50 floor yesterday.
PTTEP's average petroleum production cost is $42 a barrel, below the current global crude price, providing room for the company to make a profit.
If global oil prices continue to fall, however, PTTEP may suspend some production, particularly in the deepest seas.
"We don't think oil prices will break below $40 a barrel as we saw in 2008," Mr Tevin said, referring to a brief price collapse from a record high of $147 a barrel that year.
He said most of PTTEP's petroleum resources in 13 countries remain in the exploration process.
Meanwhile, the Energy Ministry plans to raise the tax on liquefied petroleum gas for the transport sector at a time when global LPG prices are falling.
The tax hike is unlikely to have an impact on LPG retail prices.
The monthly LPG price in Saudi Arabia is $425 a tonne for January, down from $558 in December.
Energy Minister Narongchai Akrasanee used social media to announce plans to affix radio frequency identification (RFID) tags on gas cylinders to prevent "cross trade" between the household and transport sectors.
Shares of PTTEP closed yesterday on the Stock Exchange of Thailand at 107 baht, unchanged, in trade worth 889 million baht.