PTTEP reveals $24.6 billion spending plan for the next five years
- Business & Finance
Thailand’s national oil and gas company PTTEP has set aside total expenditure of $4.6 billion for 2020 and a whopping $24.6 billion budget for the next five years.
PTTEP on Monday announced its five-year investment plan (2020-2024), which will focus on investing in the legacy assets as well as ensure transitions of the winning blocks and recently acquired projects to increase production volume and sustain the company’s growth.
Phongsthorn Thavisin, PTTEP President and Chief Executive Officer, said the company had set aside total expenditure for PTTEP and its subsidiaries in 2020 of $4.6 billion, of which $2.647 billion is capital expenditure and $1.97 billion is operating expenditure.
For the five-year investment plan (2020-2024), PTTEP allocated the budget of $24.6 billion.
Phongsthorn said: “Based on the investment plan in 2020, PTTEP expects an increase of 11% of total petroleum sales volumes comparing to this year’s target, while the expected average volumes in the next five years are also growing steadily.”
He added: “Most of the 2020 investment budget will be allocated to pursue the Execute strategy in order to maintain volumes in major producing projects, to concentrate on the key development projects so as to start adding new production volumes as planned, and to accelerate exploration activities for future reserves addition and sustainable growth of PTTEP.”
In 2020, PTTEP will focus on maintaining production plateau of the existing projects, including the S1 Project, Bongkot Project, the Arthit Project, the MTJDA Project and the Zawtika Project. Also, maintaining and ensuring the planned production volumes of recently acquired projects which are the Malaysia Project, Projects under Partex Holdings B.V., and G1/61 Project (Erawan) and G2/61 Project (Bongkot).
The company will also focus on increasing future petroleum production volumes from the major development projects including Block H in Malaysia Project, the Mozambique Area 1 Project, and the Algeria Hassi Bir Rekaiz Project to start the production as planned and accelerating the plan to develop Sarawak SK 410B project in Malaysia after the successful discovery in this year in order to reach the Final Investment Decision (FID).
PTTEP will also accelerate exploration activities, mainly in Malaysia and Myanmar, to enhance contingent resources for supporting long-term growth.
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