SET-listed PTT Exploration and Production (PTTEP), the oil drilling arm of PTT Plc, expects its business to continue growing over the next decade, despite a drop in global crude oil prices.
From 2025 to 2034, the compound annual growth rate is projected at 2-3% as the company has a production target of 716 kilo-barrels of oil equivalent per day (KBOED), representing an annual growth rate of 11% from 422 KBOED in 2020, said Sermsak Satchawannakul, senior vice-president for accounting at PTTEP.
The Dubai crude oil reference price is expected to fall from US$76.9 per barrel on average in the first quarter of this year to an average of $65-75 a barrel for the whole of 2025.
The decrease is attributed to the impact of US tariffs and additional production from Opec and its allies, which started last month, said Mr Sermsak.
In the second quarter, the gas price in Thailand is estimated at $5.8 per million British thermal units (BTUs), down slightly from the first quarter and in line with lower oil prices.
Under its 10-year business operation plan, PTTEP will maintain production in the country, especially at the Erawan, Bongkot and Arthit gas blocks in the Gulf of Thailand, Mr Sermsak said.
The company also plans to carry out new petroleum exploration projects in Malaysia and Mozambique.
"Our goal is to maintain energy security for Thailand," said Mr Sermsak.
PTTEP set a sales target for 2025 at between 505 and 510 KBOED. In the second quarter, total sales are expected to reach 500-505 KBOED, an increase from 484 KBOED in the first quarter.
The increase partly results from the increase in production at the Erawan gas field to 800 million cubic feet per day this year.
Mr Sermsak expects PTTEP's earnings before interest, taxes, depreciation and amortisation in 2025 to stay at 70-75%, on par with last year.
In the second quarter, the liquefied natural gas price in the spot market is expected to increase to $14-15 per million BTUs, attributed to increasing demand in Europe.