PTTEP plans to decide on Mozambique LNG plant
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PTTEP plans to decide on Mozambique LNG plant

Calls on Algerian and Thai petroleum fields awaited

SET-listed oil and gas drilling firm PTT Exploration and Production Plc (PTTEP) plans to make a final investment decision in 2019 to develop a liquefied natural gas (LNG) production plant in Mozambique's Rovuma Offshore Area 1 project.

The investors in the Rovuma project have postponed deciding on this project several times, although it has already been approved by the Mozambique government.

Subsidiary PTTEP Mozambique Area 1 Ltd has an 8.5% stake in several oil and gas drilling companies.

In June, the company signed an LNG heads of agreement for 2.6 million tonnes per year (MTPY) with Tokyo Gas Co and Centrica LNG Co. The project also expedites the finalisation of other LNG sale and purchase agreements.

Kanchanan Panananda, vice-president for capital and investor relations, said the Rovuma decision will be made in the first half of 2019.

"PTTEP will also decide on two other petroleum fields -- Algeria HBR in Southwest Vietnam and Ubon Contract 4 in the Gulf of Thailand -- at the same time," she said.

"All projects are part of our business plan to expand oil and gas reserves and production volume."

The partners in the Mozambique Rovuma Offshore Area 1 project earlier entered into a long-term sale and purchase agreement with Electricite de France SA, an integrated electricity company headquartered in France. The offtake agreement calls for 1.2 MTPY supplied over a term of 15 years.

The project will be Mozambique's first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88 MTPY to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.

Rovuma is a large gas project located in offshore Mozambique containing substantial recoverable natural gas resources of 75 trillion cubic feet, giving it the potential to become one of the world's largest emerging LNG supply hubs.

Ms Kanchanan said PTTEP is also looking for asset acquisitions of oil and gas blocks in Southeast Asia and the Middle East, focusing on projects starting production.

Each project is likely to be worth US$500 million (16.4 billion baht) to $1 billion.

She said purchase deals will be concluded sometime in 2019.

PTTEP reported revenue of $3.96 billion in the first nine months of this year, up 22% from $3.25 billion last year.

Net profit jumped to $851 million for the period, up from $305 million.

The sales volume for the period stood at an average of 300 kilobarrels of oil equivalent per day (KBOED), up 2% from 294.5 KBOED, priced according to Dubai crude oil at $72 per barrel.

The average price of petroleum during January to September stood at $46.25 per barrel, up 21% from $38.30.

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