Bangkok, December 14, 2023 – PTTEP unveiled its 2024 investment plan and a total budget of USD 6,721 million, with a target of a 9% growth in sales volume. The 5-year budget (2024-2028) allocation is at USD 32,575 million with the aim to hike production volume from key projects in Thailand and overseas, while expedite ongoing development projects to commence production as planned.
Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), revealed that the company adheres to its business strategy to enable sustainable growth, The strategy focuses on 3 main pillars; strengthening the petroleum exploration and production business (Drive Value), reducing Greenhouse Gas (GHG) emissions (Decarbonization) and expanding into new business in preparation for the energy transition (Diversify). To support the execution, PTTEP has set aside a budget of 2024 total expenditure at USD 6,721 million (equivalent to THB 230,194 million), of which USD 4,316 million (equivalent to THB 147,823 million) is allocated for Capital Expenditure (CAPEX) and USD 2,405 million (equivalent to THB 82,371 million) is for Operating Expenditure (OPEX). The key business activities are as follows;
1. Maximizing production volume from existing assets to strengthen Thailand’s energy security. Main producing projects include G1/61 (Erawan, Platong, Satun and Funan fields), G2/61 (Bongkot field), Arthit, S1, Contract 4, the Malaysia–Thailand Joint Development Area (MTJDA), and other major overseas projects. The CAPEX budget of USD 3,202 million (equivalent to THB 109,669 million) is planned to support such activities.
Additionally, there are plans for activities to reduce GHG emissions, with the target of achieving net zero GHG emissions by 2050. This includes lower-carbon E&P portfolio management, the development of technology to reduce GHG emissions from the production process, such as Carbon Capture and Storage (CCS), and the pursuit of emission offseting. The CAPEX budget of USD 109 million (equivalent to THB 3,733 million) is allocated for these activities.
2. Accelerating key projects’ activities which are under development phase such as Lang Lebah field in Malaysia SK410B Project, others development projects in Malaysia and Mozambique Area 1 Project to achieve production start-up timelines as planned, with the allocated budget of USD 762 million (equivalent to THB 26,099 million).
3. Expediting exploration activities to support long-term growth. The CAPEX budget of USD 220 million (equivalent to THB 7,535 million) will be used for the geological studies and the drilling of exploration as well as appraisal wells in Thailand, Malaysia, Oman and the United Arab Emirates.
For 5-year investment plan (2024-2028), PTTEP allocates budget of USD 32,575 million (equivalent to THB 1,083,376 million) with details as the followings.
Apart from the above allocations, PTTEP has ventured into new business for Energy Transition with a provisional budget of approximately USD 2,022 million (equivalent to THB 67,822 million) for the next 5-year period (2024 – 2028). This is to support the investment in offshore renewables, CCS as a Service, hydrogen and the commercialization of PTTEP’s in-house technology and other related businesses, while also ensure the company’s readiness for the energy transition.
In accordance with the investment plan, PTTEP expects its average petroleum sales volume from existing projects between 2024 – 2028, per the details below:
“With regard to the investment plan, PTTEP anticipates an approximately 9% increase in the average petroleum sales volume for 2024. The main contributions to this higher sales volume come from G1/61 Project. For the 5-year investment plan, the company continues to advance the development of key projects to commence petroleum production, aimed at fostering growth. PTTEP is also actively seeking investment opportunities in clean energy across various regions worldwide,” Mr. Montri said.
For the next five years, PTTEP plans to commence natural gas production from Abu Dhabi Offshore 2 Project in 2025 and gas production from Malaysia SK405B Project in 2027. Additionally, the company expects to start gas production from Lang Lebah field in Malaysia SK410B Project, Liquefied Natural Gas (LNG) production from Mozambique Area 1 Project and crude oil production from phase 2 of Algeria Hassi Bir Rekaiz project by 2028.
