PTT Exploration and Production Plc (PTTEP) expects its petroleum sales to increase by 9% next year thanks to more gas production from the Erawan field in the Gulf of Thailand.
Sales in 2023 are projected at an average of 464,000 barrels per day, said Montri Rawanchaikul, president and chief executive of PTTEP.
More domestic gas supply means a decrease in imported liquefied natural gas, which exposes Thailand to global price fluctuations, eventually driving up electricity bills in the country.
Gas makes up around 60% of fuels used for power generation in Thailand.
"A main contribution to our higher sales outlook in 2024 comes from Erawan, where gas production will increase to 800 million standard cubic feet per day [MMSCFD] in April, up from 600 MMSCFD in September 2023," said Mr Montri.
The company, which recently adjusted its 2024 investment budget, plans to allocate US$6.72 billion to support its business expansion next year.
PTTEP allotted a total of $32.6 billion on investment projects from 2024 to 2028, aiming to expand oil and gas production in Thailand and overseas, while supporting new petroleum development projects.
In addition to Erawan, the company plans to increase gas production at the Bongkot and Arthit gas blocks and the Malaysia–Thailand Joint Development Area in the Gulf of Thailand.
Petroleum fields under development include Lang Lebah in Malaysia and Mozambique Area 1.
PTTEP plans to allocate $220 million from its investment budget for geological studies and the drilling of exploration and appraisal wells in Thailand, Malaysia, Oman and the United Arab Emirates.
Under its business strategy, the company wants to achieve sustainable growth by strengthening its petroleum exploration and production business, reducing greenhouse gas emissions and diversifying into new businesses in preparation for an energy transition.
PTTEP earlier allocated $2 billion to support its investment in offshore renewable energy development, carbon capture storage technology and a hydrogen energy project.
"To support growth, PTTEP is seeking investment opportunities in clean energy across various regions," he said.