PTTEP Reports on Q1 Results
PTT Exploration and Production Public Company Limited (PTTEP) made a profit of more than 6,700 million baht in the first quarter of this year. The company plans to install the state-of–the–art central processing plant, one of the biggest in Southeast Asia, at Arthit Project in the Gulf of Thailand late this year. M9 project in the Gulf of Martaban is also progressing well and is expected to come on stream in the next 4 years.
First Quarter Results for 2007
Mr. Maroot Mrigadat, President of PTT Exploration and Production Public Company Limited (PTTEP) revealed that PTTEP and its subsidiaries' net profit for the first quarter of 2007 was baht 6,771 million, a decrease of baht 1,068 million or 14% from 7,839 baht posted during the same period of last year; the return on shareholder's equity for this quarter was 30.32%.
In this quarter, PTTEP and its subsidiaries had total revenue of baht 21,270 million, a decrease of baht 1,423 million or 6% from baht 22,693 million registered during the same period of last year. This was due partly to the appreciation of the baht which was baht 36.15 to a dollar compared with baht 39.73 to the dollar during the same period of 2006. The result was the decrease in sales value despite the higher product price at US$ 35.43 per barrel of oil equivalent (BOE) compared with US$34.28 BOE during the same quarter of last year.
Another factor was the decrease in sales volume to 171,170 barrels of oil equivalent per day (BOED) compared with 171,508 BOED in the same quarter of last year. This was due to the drop in sales of natural gas from Yetagun, the delay of the Oman 44 Project, the drop in sales of crude oil from B8/32&9A Project and the drop in the condensate production at Bongkot Project. The drop was partly made up by the increased sales of natural gas from Yadana as well as sales of natural gas and condensate from Phu Horm Project.
Mr. Maroot Mrigadat believes that the production volume and sales volume will soon meet the target because the production of condensate at Bongkot is expected to return to normal soon and production at Nang Nuan where crude oil has recently been found at a new well would add to the production volume. At the same time, natural gas and crude oil from Oman 44 Project which has started production should help increase the production volume even more. The first batch of crude oil from Oman 44 Project is expected to arrive in Thailand in a tanker in June this year marking the first time that crude oil produced in the Middle East by a Thai company is used in Thailand.
As of March 31, 2007, PTTEP and its subsidiaries had total assets of baht 172,428 million, up baht 14,615 million or 9 % from the end of 2006.
81% Progress of Arthit Production Platform: the Biggest in Southeast Asia
Arthit Project Phase 1 is progressing well. The jackets for the central processing platform and the quarter platform are now in place and the installation of six wellhead platforms have been completed, along with 5 gas pipelines, one condensate pipeline and the flare tripod. Construction of the central processing platform which is now being done in Batam, Indonesia, is 81% complete. At 16,800 tons, the platform will be the heaviest and biggest in Southeast Asia. PTTEP plans to install it late this year using float installation method which will help save time and cost. It will be the first time that this method is used in the Gulf of Thailand.
M9 Development Plan Now in Progress
PTTEP has completed its drilling of exploration wells at M9 Block in the Gulf of Martaban in the Union of Myanmar. The drilling campaign was done from 2005 to 2007 and natural gas was found in 4 exploration wells: Zawtika-1A, Gawthaka-1, Kakonna-1 and Zawtika-2.
The company is drilling 4-5 appraisal wells to confirm the primary petroleum reserves. This is expected to finish in July 2007. M9 development plan is now in progress with the aim to start production in 2011 or 2012 for domestic use and for export to Thailand.
Increase of Participation Interest in G4/43
PTTEP was entitled to increase its participation interest in Block G4/43 from 15% to 21.375% in accordance with the provision of the Petroleum Concession which stipulates that the rights can be executed when the commerciality of the block is proven.
Block G4/43 covers an area of 9,686 square kilometers in the Gulf of Thailand, off the coast of Prachuab Khirikhan and Chumporn provinces. Since 2003, G4/43 concessionaires have started the geological survey and the exploration wells drilling particularly in Lanta and Similan fields. The operator drilled 6 exploration wells and found crude oil and natural gas. Lanta development plan was approved by the Ministry of Energy in June 2006 and the project is preparing to drill a development well. It aims to start producing natural gas and crude oil by the end of 2007 with initial production rate of approximately 6,000-8,000 barrel per day of crude oil which will serve the domestic demand and increase the energy security for Thailand.
G4/43 joint venture partners now consists of Chevron (the operator), PTTEPI – a PTTEP's subsidiary, MOECO and Palang Sophon Two Limited with 51%, 21.375%, 21.25% and 6.375% participation interests respectively.
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