Thai PTTEP Cuts 5-Year Investment Budget, Sales Forecast


BANGKOK, March 5 (Reuters) - Thailand's PTT Exploration and Production Pcl said it has cut its five-year investment budget by 8 percent and 2014 petroleum sales target by 3 percent due to lower output from an Australian field and a delay in the startup of a gas field in Myanmar.

The country's top oil and gas explorer aimed to spend $25 billion during 2014-2018, lower than the previously announced $27.5 billion after an asset swap in the Canadian KKD oilsands project with Norway's Statoil.

"We don't have to invest more after the restructuring in the KKD project. That will affect sales volume too," Yongyos Krongphanich, senior vice president for finance, told reporters.

Norway's Statoil is stepping up its exposure to Canadian oilsands, paying about $200 million to take full control of some assets it had previously shared with the Thai explorer.

PTTEP now expects 2014 petroleum sales of 325,000 barrels of oil equivalent per day (BOEPD), versus an earlier forecast of 337,000 BOEPD, as a cyclone in Australia cut output at the Montara field to below its 30,000 barrels per day (bpd) target, Yongyos said.

"The impact from weather conditions will cut output by 3,000-4,000 bpd," he said.

The sales forecast represented a 10 percent increase from 2013 when the company cut it sales target twice due to repeated delays in the Montara field.


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