PTTEP allots $300m for 2020 exploration activities
PTT Exploration and Production Plc (PTTEP) has budgeted US$300 million in 2020 to explore 18 offshore gas blocks in Malaysia and Myanmar to maintain petroleum reserves.
PTTEP's exploration activities this year have tripled from six gas blocks the previous year.
Chanamas Sasnanand, senior vice-president for finance, said gas demand in Malaysia and Myanmar is growing rapidly.
For Malaysia, growth is in line with a new liquefied natural gas (LNG) production facility to supply Petronas, the Malaysian oil and gas flagship.
In Myanmar, gas demand is driven by the power generation sector.
PTTEP reported 20% of total sales volume came from Malaysia and Myanmar in 2019.
PTTEP has become the third largest petroleum exploration and production operator in Malaysia based on the size of resources with three fields: Block K, SK 309 and SK 311 projects.
It discovered the SK 410B project in Sarawak previously. The Block H project is preparing for gas production by September with a full capacity of 270 million standard cubic feet per day.
This year the company is preparing additional drilling of appraisal gas blocks in Malaysia.
In Myanmar, PTTEP has three gas blocks -- MOGE 3 (onshore), and M11 and MD-7 (offshore). Three blocks are producing -- Zawtika, Yadana and Yetakun. The M3 project is preparing for future production.
Mrs Chanamas said PTTEP has acquired many petroleum assets: Murphy Oil Corporation's business in Malaysia; Partex Holding's business in Oman; and the Sinphuhorm project in Udon Thani and Khon Kaen.
In 2019, PTTEP reported a record average sales volume of 350,651 barrels of oil equivalent per day (BOED).
PTTEP's proven reserves rose to 1.14 billion BOED at the end of 2019, resulting in a reserve life (ratio of proven reserves to production) of 7.5 years as targeted.
The company posted 2019 net income of $1.57 billion, up 40% from the previous year.
PTTEP is proceeding with synchronisation for gas production of the Erawan and Bongkot gas fields in the Gulf of Thailand after it won two bids in December 2018.
The renewal contracts are set for 2022 and 2023.
PTTEP expects to make a final investment decision soon on the Mozambique Area 1 and Algeria Hassi Bir Rekaiz projects after preparing for many years.
Mrs Chanamas said the company projects reserve life from all planned projects will increase the sales volume by 6% per year, expecting to reach 450,000 BOED in 2022 and 467,000 BOED in 2024.