PTT Exploration and Production Plc (PTTEP) has exited its petroleum exploration and production business in Brazil by dissolving its subsidiary Participations and Explorations Corporation (PEC), as the company aims to focus more on investments in Asia.
The dissolution of PEC, which is currently inactive, will minimise administrative costs and improve the operational efficiency of PTTEP, according to a letter submitted to the Stock Exchange of Thailand on Monday.
PEC halted its business operations last month after PTTEP decided last September to sell another subsidiary – PTTEP Brazil Investment BV – and all its other investments in Brazil.
Sumrid Sumneing, PTTEP's executive vice-president for finance and accounting, said the move was in line with the company's policy to direct investments to Asia-Pacific and the Middle East.
The sale of PTTEP's Brazilian investments marks the end of PTTEP's operations in the country, part of the company's rationalisation of its investment portfolio to comply with its strategies.
PTTEP Brazil Investment owns a 25% share in the offshore Barreirinhas AP1 crude oil exploration and production project as well as a 20% share in the BM-ES-23 project. Both projects are in Brazil.
Last month, PTTEP also announced the divestment of a 2.5% share in an oil project in Angola, as part of its plan to direct funds to other regions.
The company is in the process of selling its shares in Block 17/06 to Sociedade Petrolífera Angolana SA.
Block 17/06 is an offshore oil field located off the west coast of Angola in central-southern Africa. The project is currently in the development phase.
The divestment marks the withdrawal of all of PTTEP's investments from Angola.
To expand investments in Asia, PTTEP last year acquired a 25% stake in the Sharjah Onshore Area A from a subsidiary of Eni, an Italy-based integrated energy company.
This Sharjah Onshore Area A is PTTEP's fifth project in the United Arab Emirates since the company's entry into the country in 2019.
PTTEP last month also announced five years of investments worth US$29 billion to boost national energy security and fight global warming.
The budget, to be spent between 2023 and 2027, comprises capital expenditure of $18.1 billion and operating expenditure of $10.9 billion.
This year, PTTEP plans to maximise petroleum production at its facilities to ensure energy security for Thailand.
Petroleum will be mainly supplied from the Erawan, Bongkot and Arthit gas blocks in the Gulf of Thailand and other sites, including those in Malaysia.
The Department of Mineral Fuels is urging PTTEP to increase gas production at the Erawan block from 200 million metric standard cubic feet per day (MMSCFD) to 400 MMSCFD by July this year, and 600 MMSCFD by the end of 2023, in order to reduce Thailand's dependence on the import of costly liquefied natural gas, which has been blamed for pushing up power bills.