SET-listed oil and gas explorer PTT Exploration and Production Plc has made a gas discovery off the shore of Sarawak in Malaysia, marking PTTEP's biggest find ever.
Through wholly owned subsidiary PTTEP HK Offshore Ltd (PTTEP HKO), the company found the gas at Lang Lebah-1RDR2, the first exploratory well in the Sarawak SK410B project.
The subsidiary commenced drilling in March to a total depth of 3,810 metres in Lang Lebah-1RDR2. The well encountered 252 metres of net gas pay, indicating a multi-trillion-cubic-feet discovery, and was tested in a carbonate main target reservoir with a completion-constrained rate of 41.3 million standard cubic feet per day (MMSCFD) and 246 barrels of condensate per day (BCPD).
Phongsthorn Thavisin, president and chief executive, said the achievement affirms PTTEP's strategy to organically increase reserves from exploration activities.
The discovery will require further drilling to confirm upside potential. The Sarawak SK410B project is located in shallow waters, about 90 kilometres off the coast of Sarawak, with an acreage of 1,870 sq km.
The consortium consists of PTTEP HKO (the operator), Kuwait Foreign Petroleum Exploration Co and Petronas Carigali Sdn Bhd, with participating interests of 42.5%, 42.5% and 15% respectively.
Mr Phongsthorn said the company will revise its five-year investment plan for 2019-23, budgeting US$16.11 billion (525.06 billion baht), excluding two new gas fields, Erawan and Bongkot.
He said PTTEP commenced massive spending in the first half by acquiring petroleum blocks in Malaysia from Murphy Oil Corporation ($2.13 billion); Portugal-based Partex Holding BV in the Middle East ($622 million) and a final investment in Rovuma Offshore Area 1 in Mozambique ($20 billion). PTTEP has a 8.5% ownership of the Mozambique project.
The three projects required an allocation of funds larger than PTTEP had originally planned, so they have to be reconsidered and submitted to the board of directors in late July.
PTTEP expects its petroleum sales volume in 2019 to rise 15% to 344,000 barrels of oil equivalent per day, Mr Phongsthorn said.
He said PTTEP expects to receive a power generator licence from the Myanmar government for a new gas-fired power plant with a capacity of 600 megawatts. This project is a collaboration with Global Power Synergy Plc, another PTT subsidiary.
Mr Phongsthorn said PTTEP's gas production in Myanmar's Zawtika block and M3 field are likely to offer output for the new power plant.
PTTEP plans to increase gas production capacity from both resources to supply the new power plant in Myanmar.
PTTEP shares closed yesterday on the Stock Exchange of Thailand at 136 baht, up two baht, in trade worth 2.42 billion baht.