PTTEP Expects First Gas from Bongkot South in 1H 2012

Mr. Anon Sirisaengtaksin , President and CEO of PTT Exploration and Production Public Company Limited or PTTEP, revealed today that PTTEP and its subsidiaries had a better operating results for 2011 than the previous year.

In 2012, the company is ready for the first gas from Bongkot South Field in the 1st half while crude oil from Montara Field is expected in the 2nd half.

Bongkot, which has been on production since 1993, is the biggest gas field in the Gulf of Thailand

Giving the summary of PTTEP and its subsidiaries’ operating results for the year 2011 (Unaudited), Mr. Anon said that the company posted a recurring net profit of 1,659 million USD, an increase of 367 million USD or 28% compared to its net profit of 1,292 million USD in 2010. The return from normal operation on shareholder’s equity was at 28%.

Revenue up by 25%

In 2011, the total revenue of PTTEP and its subsidiaries was 5,685 million USD (equivalent to 173,375 million baht), presenting an increase of 1,153 million USD or 25% compared with 4,532 million USD (equivalent to 143,506 million baht) posted a year earlier. Attributing to the increase was the higher revenue from sales thanks to the product price of 55.49 USD per barrel of oil equivalent (BOE) compared with 44.83 USD per BOE in 2010. Sales volume also went up to 265,047 barrel of oil equivalent per day (BOED) compared with 264,575 BOED in 2010. Contributing to the increased sales were petroleum products from the Canada Oil Sands KKD Project, crude oil from the Vietnam 16-1 Project, and natural gas from MTJDA-B17 Project.

Net profit rises 6%

Mr. Anon added that the company’s totaled net profit of 1,468 million USD (equivalent to 44,748 million baht) increased 6% compared with 1,380 million USD (equivalent to 43,774 million baht) in 2010. This mainly stemmed from non-recurring items, that are, unrealized losses on an increase of income tax expenses after the translation from USD to Baht due to the Baht depreciation against the USD, and on foreign exchange rate from USD loan between PTTEP and its subsidiary, PTTEP Canada Limited. This has no effect to cash flow or the operating result.

Vietnam 16-1 Started in August

For 2011, one of the key progresses was Vietnam 16-1 Project commenced its first production on August, 2011. The current average production rate is approximately 32,000 barrels per day (BPD). Canada Oil Sands KKD Project has commenced its production since the beginning of the year, with the maximum production rate reaching approximately 18,190 BPD. In addition, the project is in an evaluation of installing an additional stream generator to increase the production rate to 22,000 BPD.

The Bongkot South Field in the Gulf of Thailand is currently ongoing the commissioning offshore activities. The project is expected to start up natural gas production at 320 million standard cubic feet per day by the first half of 2012. Another is the development of Montara Field progressing as planned. The expected initial production is still maintained in the second half of 2012 as well. Myanmar Zawtika Project is under process of the constructions of the processing platform, wellhead platform, gas pipeline network, and facilities. PTTEP expects to start up natural gas production in 2013.

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Offshore Energy Today Staff, January 31, 2012; Image: PTTEP