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PTTEP cuts 2017 budget by 30% for efficiency

PTTEP cuts 2017 budget by 30% for efficiency

BANGKOK: SET-listed PTT Exploration and Production Plc (PTTEP), the country’s biggest oil and gas explorer, has cut its 2017 investment budget by 30% to US$2.9 billion and is focusing on efficiency, says president and chief executive Somporn Vongvuthipornchai. Of the $2.9 billion, copy.64 billion is for capital expenditure (capex) and 1.26 billion is for operating expenditure, Mr Somporn said.

Investment in existing projects in Thailand and Southeast Asia, the company’s strategic investment locations, accounts for 88% of total capex, he said. Projects in Thailand make up 64% of PTTEP’s estimated 2017 capex. The priority is to maintain production level at existing projects, which include the Arthit, S1, Bongkot, Contract 4 and MTJDA projects. Other projects in Southeast Asia account for 24%, which include maintaining production level at the Zawtika and Yadana projects in Myanmar, as well as exploration activities for the Myanmar MOGE 3 and Myanmar M11 projects. Projects in other regions such as Australia, Africa and the Americas account for 12% of its capex. The company will also continue its operational activities in PTTEP’s Australasia project and the pre-development of the Mozambique Rovuma Offshore Area 1 project. Estimated exploration expenditure for 2017 has been allocated copy38 million, mostly to be used for seismic acquisition, geological and geophysical studies, and drilling and appraisal activities. PTTEP has set its investment budget for the next five years (2017-21) at $5 billion.