Thailand: PTTEP Profit at USD 566 Million

PTT Exploration and Production Public Company Limited or PTTEP posted a net profit of USD 566 million in the third quarter of this year, an increase of USD 8 million in compare to the third quarter of 2012 at USD 558 million. The result comprised of the recurring net profit for this period amounted to USD 600 million, and the loss of non-recurring items amounted to USD 34 million.

In this quarter, the total revenue of PTTEP and its subsidiaries was USD 1,841 million, an increase of USD 21 million compared to the same period of 2012 at USD 1,820 million. The increase was the result of higher average petroleum sales price from USD 64 per barrel of oil equivalent (BOE) to USD 65.71 per BOE.

PTTEP’s third average sales volume slightly decreased to 286,578 barrels of oil equivalent per day (BOED), compared to the same quarter of 2012, at 292,228 BOED. The decrease was the result of Bongkot project’s shutdown planning, the reduction of crude oil’s sales volume from the Vietnam 16-1 project, and the temporary shutdown of the B 8/32 and 9 A project for the repairing of wellhead equipment.

PTTEP’s Third Quarter Business Performances

Currently, PTTEP has invested in 45 petroleum exploration and production projects in 12 countries which can be highlighted as follows;

Projects in Thailand: Most projects are in production phase. S1 project continuously maintains crude oil production with an average of 32,618 barrel per day (BPD). In overall, Bongkot project produces natural gas at an average of 898 million standard cubic feet per day (MMSCFD) and condensate at the rate of 30,294 BPD.

Projects in South East Asia: Zawtika Project located in the Gulf of Mataban, the Republic of the Union of Myanmar, is in process of natural gas pipeline’s construction and drilling of production wells. The central production platform is scheduled for installation in October 2013 with expected first commercial production to start up by the first quarter of 2014. Myanmar M3 Project has completed 4 appraisal wells with gas discovered. It is in the phase of assessment for commercial development with plans to drill more appraisal wells in 2014. In September, the government of the Republic of the Union of Myanmar has approved PTTEP International Limited (PTTEPI) to divest 20% participating interest to Mitsui Oil Exploration Co. Ltd (MOECO). PTTEPI continues to be the operator, and holds 80% participating interest in the project. Myanmar M11 Project began drilling a deep water exploration well named Manizawta-1 in September 2013 and is expectd to finish drilling towards the end of 2013 or early January 2014. Myanmar PSC and EP-2 Project, locatd onshore in the north of Yangon, continues the ongoing process of 2D seismic and expected to complete in October 2013. Vietnam 16-1 Project successfully completed drilling an appraisal well in Area H5 of the Te Glac Trang Field (TGT field) and has prepared for wellhead platform installation. The project produces crude oil at an average rate of 40,000 BPD and natural gas at an average rate of 26 MMSCFD.

Project in Australasia: PTTEP Australasia Project: Montara Field started up production in June 2013 with the current average production rate of 10,000 BPD. In August 2013, the FPSO offloaded approximately 500,000 barrels of crude oil for sales. The project is expected to ramp up production through subsea wells and an additional development well, scheduled to drill by the last quarter of 2013. Cash Maple Field is in process of geological and geophysics engineering studies and the analysis of commercial feasibility for the development of the field. The project plans to drill additional exploration and appraisal wells in early 2014.

Regarding the compensation claim, as of the 3rd quarter of 2013, PTTEP has received a total compensation claim of USD 212 million. The remaining compensation claims are in progress and PTTEP expects to receive the remaining claims during the 4th quarter of 2013 and during 2014. With regard to the claim submitted by the Government of Indonesia for compensation of the oil leakage during the Montara incident, PTTEP continues to assess the case with the Indonesian government through scientific evidence to determine the impact (if any).

Projects in North America: KKD Oil Sands Project’s Leismer field produces bitumen at an average rate of 15,960 BPD during the 3rd quarter of 2013. The project is now carrying out the Front End Engineering Design (FEED) process to increase the production capacity to 40,000 BPD. Meanwhile, Corner field is carrying out the FEED process for a production capacity of 40,000 BPD.

Projects in Africa and the Middle East: Algeria 433A and 416B Project completed drilling 6 of 12 total development wells. The construction processing and pipeline facilities are ongoing, as well as the construction of living quarters and utility facilities. Production is expected to start at the end of 2014. Algeria Hassi Bir Rekaiz Project is in the second exploration phase (May 2013 to May 2015). The seismic program and appraisal drilling are expected to commence during the first quarter of 2014. Mozambique Rovuma Offshore Area 1 Project is in process of developing offshore natural gas fields, and is planning to construct onshore Liquefied Natural Gas or LNG facilities in the industrial zone in northern Mozambique. Moreover, the project completed 4 drilling wells which the results are in assessment process. Kenya L5, L7, L11A, L11B and L12 Project drilled an exploration well called Kiboko-1 in the L11B field with results indicating no potential for commercial development. However, the findings will be valuable for future geological studies.

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LNG World News Staff, October 29, 2013