PTTEP Closing in on 1bn Barrels of Reserves

By Yuthana Praiwan, Bangkok Post, Thailand

Feb. 7–The proven petroleum reserves of PTT Exploration and Production Plc are expected to increase to one billion barrels of oil equivalent this year from 923 million barrels as of last year.

The SET-listed affiliate of PTT Plc was preparing to book additional reserves of 80 million barrels from its petroleum fields in Vietnam this year, president Maroot Mrigadat said yesterday.

As well, the company hopes to produce petroleum at volume higher than the target of 188,000 barrels per day (bpd) on average, up 9 percent from 2006.

The improvement would stem partly from additional supplies of 3,000 to 5,000 bpd from the Nang Nuan field, 80-90 million cubic feet per day (mcfd) of gas from the Phu Hom field, 40-50 mcfd from its petroleum field in Oman, and 4,000 bpd equivalent of gas condensates from various fields.

Seventy percent of the company’s oil and gas reserves were in Thailand, Mr Maroot said.

PTTEP expects to issue 3.5 billion baht worth of debentures this week if it receives Securities and Exchange Commission approval today..

Mr Maroot said proceeds from the issue would be used to invest in petroleum exploration and production overseas and at home. The company’s total investment budget this year is 74.5 billion baht, an increase of 50 percent from last year.

Of the total, 48.4 billion baht will be spent in Thailand and 26.1 billion baht overseas.

Locally, the company will focus on accelerating petroleum production in the offshore fields in the Gulf of Thailand.

PTTEP will spend 16 billion baht in the Arthit field to produce an additional 330 mcfd of natural gas; six billion baht in the Bongkot field to produce 595 mcfd of gas; 5.8 billion baht in the B8/32 and 9A blocks to produce 54,141 bpd of crude; and 3.6 billion baht in Pailin to produce 405 mcfd of gas.

Overseas, Mr Maroot said the company would invest 9.1 billion baht in the Thai-Malaysian joint development area to produce 270 mcfd of natural gas in the second quarter of 2009, and up to 450 mcfd later in the same year.

The company will spend 4.76 billion baht on exploration in Burma, four billion in Vietnam and 3.4 billion baht in Algeria.

Shares of PTTEP closed yesterday on the Stock Exchange of Thailand at 96.50 baht, down 50 satang, in trade worth 224.4 million baht.

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