PTTEP reveals 2013 achievement and five-year plans

PTTEP Newsroom

07 Jan 14

  • Increase sales volume to 292,000 barrels of oil equivalent per day or a rise of 6%
  • Accelerated development plan to increase our proved reserves life (R/P) to 10 years
  • Invests over USD 27,000 million in the next 5 years, from 2557-2561 as per long term strategic plan to support higher energy demand in the future.

Mr. Tevin Vongvanich, President and CEO of PTT Exploration and Production Public Company Limited or PTTEP revealed 2013 achievement, strategic plan and 5-year plan as details below:

2013 Achievement

In 2013, PTTEP has steadily grown as the Thai national petroleum exploration and production company with the production rate of 292,000 barrels per day (BPD), 6% higher than year 2012.

In 2013, there were key milestones;

  • S1 Project has reached 30-year production anniversary with contribution of 231 million barrels of oil to serve Thailand’s demand and highest production rate of 37,890 BPD on February 25, 2013.
  • Bongkot Project celebrated its 20-year production anniversary with accumulated gas production over 3.7 trillion cubic feet (TCF) and accumulated condensate production over 112 million barrels (MBOE).

Furthermore, Montara Field started up its first crude oil production at 10,000 BPD while Zawtika Project is under the commissioning process which is expected to produce natural gas in the first quarter of 2014.

For exploration, PTTEP successfully found petroleum in Algeria Hassi Bir Rekaiz Project and natural gas in Myanmar M3 Project.

For investment expansion, PTTEP and Pertamina jointly signed Share Purchase Agreements (SPAs) to acquire the subsidiaries of Hess Corporation in Indonesia. The transaction of Natuna Sea A has been accomplished by end of 2013.

Financially, domestic and international investors hold high confidence in PTTEP as the company has entered the Stock Exchange of Thailand (SET) for 20 years. We then successfully raised capital from the stock market after 3 Initial Public Offering (IPO), and consistently expanded their investment both in Thailand and abroad. All leads to continuous growth of reserves, production, and rate of return that is higher than the industry average.

In corporate social responsibility (CSR) perspective, PTTEP has initiated a Reforestation Project in 2013 with 200,000 rais by 2020. Suansri Nakhonkhueankhan Ecosystem Learning Project in Bangkachao has started under the initiative of Her Royal Highness Princess Maha Chakri Sirindhorn. Lastly, PTTEP has cooperated with PTT Group to establish Rayong Institute of Science & Technology (RAIST) and Rayong Science Academy (RASA) in order as part of its plan to boost long-term business sustainability and to develop an academy focusing on science and technology.

Throughout the year of 2013, PTTEP has been widely recognized for its committed operation as it has been ranked as top quartile level by the International Association of Oil and Gas Production (OGP) for improved Lost Time Injury Frequency (LTIF). Additionally, PTTEP also received many awards;

  • “NACC Integrity Awards 2012” from the National Anti-Corruption Commission (NACC)
  • “Top Corporate Governance Report Award” for the third consecutive year from the Stock Exchange of Thailand (SET)
  • “The Investor Relations Award” from the Stock Exchange of Thailand (SET)
  • The Board of the Year 2012/2013 in four catgories:
    • Board of the Year for Exemplary Practices
    • Hall of Fame-awarded to Board that have been honored with the Board of the Year Awards for Exemplary Practices for 3 consecutive times
    • Board of the Year for the Distinctive Practices
    • Audit Committee of the Year for the second time
  •  “Most Organized Investor Relations” and “Best Strategic Corporate Social Responsibility” awards from Hong Kong’s Alpha SEA Magazine.

These recognitions and awards endorsed our unfailing commitment to high standards. PTTEP conducts its business as a responsible corporate member of the society. We hold issues of society and environment at heart as we operate with strict corporate governance policies.

PTTEP Strategic Plan

PTTEP has accomplished major success while implementing several changes to better prepare PTTEP for future business challenges and sustainable growth.  Our long term strategy was revised to strike a balance among 3 directions: production (Big), reserves life (Long) and investment return (Strong).  The company adjusted our previous 2020 production aspiration of 900 kbd down to a more realistic target of 600 kbd. However, the company has accelerated exploration and production in order to maintain capacity. As well as explore more reserve in overseas projects. To improve our proved reserves life (R/P) to 10 years, to maintain our ROCE above an E&P industrial average, and to retain our credit rating at the country level.

“PTTEP also plans to expand its investment in new projects, both the acquisition and merger in the initial production or in development phase, in order to increase production and proved reserves. Moreover the company attempts to develop capacity of the organization in many areas in technology, procedure, human resource development and funding to achieve the company’s strategic plan and goals” Mr. Tevin added.

Invests over USD 27,000 million for 5-year plan

PTTEP 2014-2018

The capital expenditure and operating expenditure of the company and its subsidiaries from 2014 to 2018 will be approximately USD 27,282 million. The major of investment allocation will aim to develop PTTEP’s exploration and production projects in Thailand and aboard. The planned expenditure is shown in the chart;

Unit: USD Million






Capital Expenditure







Operating Expenditure







Total Expenditure       







The plan has not yet included the investment expenditure for support new venture opportunities.

In 2014, PTTEP expects to increase sales volume to 337,000 BOED, 16% increase from year 2013. The overall of investment expenditure at USD 5,507 million is planned in different projects;

Production activity: Maintaining production levels through high-technology to optimize petroleum reserves for sustainable production in major projects in the country and overseas including Bongkot, S1, MTJDA-B17, Canada Oil Sands KKD, PTTEP Australasia (Montara field) projects.

Development activity: Focusing on project management to complete the operation plan and budget in order to generate more passive income and value-added benefit to the company in the near future resulted from major projects for example; Algeria 433a & 416b, Mozambique Rovuma Offshore Area 1 and Floating Liquefied Natural Gas (FLNG) (Cash & Maple field) projects.

Exploration activity:
  Managing the investment management of various exploration projects; Myanmar M3, Myanmar PSC G & EP2, Algeria Hassi Bir Rekaiz and exploration projects in Australia, Mozambique and Kenya to increase future reserves and production as part of the company’s sustainable growth.
The expected average petroleum sales volumes per day based on existing projects for the years 2014 – 2018 are as follows:

Unit: Thousand Barrel of Oil Equivalent per day







Expected average petroleum sales volume

337 354 344 330 321

“Beside the important of petroleum exploration and development to increase PTTEP’s reserve, the company will spend 40% of net profit. We also emphasize on technology development and corporate sustainable development as well as environment. This is in line with our corporate strategies that PTTEP will spend 6% of net profit in technology and R&D, 4% in CSR which are also highlighted in our strategies”. Mr. Tevin added.

View PTTEP Jan 2014 Presentation

7 January 2014. For more information, please contact Corporate Communication and Reputation Management Department
Bussaban Cheencharoen Tel. +66 (0) 2537 4607 E-mail:
Tongchit Pongorapin Tel. +66 (0) 2537 4587 E-mail:
Vanduan Vijintanasarn Tel. +66 (0) 2537 5418 E-mail:


About artidj

I started working as a field engineer in Oil & Gas industry back in 1996. I do this news clipping of the industry and the geography I am interested in, mainly for my own information. I'm glad you find it useful.
This entry was posted in Australia, E&P, Exploration, Indonesia, Myanmar, Production, Thailand, Upstream and tagged , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s