PTTEP revises 2006-2010 capex and opex to $5.8 billion

Thailand's PTT Exploration and Production Public Co. Ltd. has revised its estimated capital expenditure and operating expenditure for 2006-2010 to $5.8 billion.

Offshore staff

(Asia-Pacific) - Thailand's PTT Exploration and Production Public Co. Ltd. (PTTEP) has revised its estimated capital expenditure (capex) and operating expenditure (opex) for 2006-2010 to $5.8 billion, up from $4.6 billion estimated for 2005-2009.

The revision includes 29 new projects.

PTTEP president Maroot Mrigadat says the expenditure would help raise production to 238,400 boe/d in 2010 from 240,100 boe/d in 2009, 236,300 boe/d in 2008, 224,200 boe/d in 2007, and 179,000 boe/d this year.

This year's capital and operating expenditures would be $1.2 billion and $410 million; 2007's $972 million and $362 million; 2008's $901 million and $373 million; 2009's $524 million and $385 million; and 2010's $284 million and $410 million, reports Maroot in a filing to the Stock Exchange of Thailand.

Major projects being undertaken by the listed upstream unit of the Petroleum Authority of Thailand (PTT) are:

1. Bongkot Project (PTTEP's share 44.44%)

Total expected average natural gas sales amount is 598 MMcf/d. The capex is mainly for the construction of six additional wellhead platforms, the drilling of eight development wells, the drilling of three exploration wells, and 3D seismic surveys in the North Bongkot area and the South Bongkot area, the latter of which is a new production area.

2. S1 Project (PTTEP's share 100%)

Total expected average crude oil sales amount is 19,265 b/d. The capex is mainly for the drilling of 35 development wells and upgrading and construction of production facilities.

3. B8/32 & 9A (PTTEP's share 25%)

Total expected average crude oil sales amount is 53,000 b/d. The capex is mainly for the construction of five wellhead platforms, the drilling of 103 development wells, and the drilling of two exploration wells.

4. Pailin Project (PTTEP's share 45%)

Total expected average natural gas sales amount is 376 MMcf/d. The capex is mainly for the drilling of 64 development wells, the construction of a wellhead platform, and the layout of pipelines.

5. Arthit Project (PTTEP's share 80%)

The current plan for the Arthit project is to start up gas production in the first half of 2007. Total expected initial production rate will be at 330 MMcf/d. The capex is mainly for the construction of a production platform, six wellhead platforms, and the drilling of 44 development wells.

6. Malaysia Thailand Joint Development Area (MTJDA) Project (PTTEP's share 50%)

The current plan for the MTJDA Project is to start up gas production in the second half of 2008. Total expected initial production rate will be at 270 MMcf/d, with an option of up to 470 MMcf/d. The capex is mainly for the drilling of four exploration wells, the drilling of three appraisal wells, and the preparation of production facilities.

7. Myanmar M7 & M9 Project (PTTEP's share 100%)

Capex is mainly for the drilling of six exploration wells, geological and geophysical studies, and 3D seismic surveys in order to establish the potential natural gas reserves and achieve a development plan.

8. Algeria 433a & 416b Project (PTTEP's share 35 %)

Capex is mainly for 3D seismic surveys and the drilling of two appraisal wells to complete the initial exploration commitment, and then to enter into the second exploration phase.

9. Vietnam 16-1 Project (PTTEP's share 28.5 %)

The Capital Expenditure is mainly for the drilling of 2 exploration wells, the drilling of an appraisal well and 3D seismic surveys in order to establish the potential oil reserve and then enter into the development phase.

10. Vietnam 9-2 Project (PTTEP's share 25%)

Capex is mainly for the sidetrack drilling of the appraisal well, CNV-4X, and geological and geophysical studies in order to establish the potential oil reserves and then enter into development phase.

01/10/06


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