PTTEP reports on Q1 results and future plans
Posted: 3 May 2006
Mr Maroot Mrigadat President of PTT Exploration and Production Public Company Limited (PTTEP) reported on the company’s performance for the first quarter of 2006 and significant issues affecting this period and PTTEP’s future plans.
First Quarter results for 2006
In the first quarter of 2006, PTTEP and its subsidiaries net profit was Baht 7,839 million or Baht 11.92 per share diluted an increase of Baht 3,585 million or 84 per cent from the same period last year, when there was a net profit of Baht 4,254 million. Return on shareholders’ equity for the first quarter of 2006 was 38.88 per cent
PTTEP and its subsidiaries had a total revenue of Baht 22,693 million an increase of Baht 9,165 million or 68 per cent from the same period last year (Baht 13,528 million).
This increase was mainly attributable to higher average sales price of USD 34.28 per barrel of oil equivalent (BOE) against the same quarter in 2005 of USD 25.42 BOE and increased sales volumes for this quarter to 171,508 barrels of oil equivalent per day (BOED) compared with last year of 142,685 BOED.
The increase in sales mainly came from the crude oil from the B8/32 & 9A and S1 Projects, and natural gas and condensate from the Pailin and Bongkot Projects. PTTEP made an upfront payment under the Gas Sales agreement to PTT Public Co. Ltd. amounting Baht 331 million.
PTTEP and its subsidiaries incurred expenses in this quarter of Baht 9,240 million, an increase of Baht 3,528 million or 62 per cent from the same period last year (Baht 5,712 million).
The increase in expenses was the result of increased operating expenses, mainly due to the costs from the B8/32 & 9A Project and increased logistic costs for the Bongkot Project. Another factor was the rising exploration expenses, mainly a result of 3D seismic costs of the Myanmar M7 & M9 and Bongkot Projects.
PTTEP and its subsidiaries for this period had total liabilities of Baht 76,072 million which was an increase of Baht 4,452 million from the end of 2005. As of March 31, 2006 PTTEP and its subsidiaries had total assets of Baht 155,289 million or Baht 11,972 million higher than from the end of 2005.
PTTEP ready to deliver its first Oman natural gas in July 2006
PTTEP is preparing to start delivering natural gas and condensate from the Shams field in the Oman 44 Project to the Ministry of Oil and Gas, Sultanate of Oman as planned in July 2006 at a rate of 50 million standard cubic feet per day (MSCFD) and condensate at 4,000 barrels per day. This will be the first time that PTTEP has produced and delivered natural gas and condensate in the Middle East.
Recently PTTEP completed the drilling and testing of an appraisal well at Shams-7 where natural gas was discovered at a cumulative flow rate of approximately 45 MSCFD and condensate at approximately 1,600 barrels per day. Furthermore, in 2006 PTTEP plans to drill 1 exploration well and 3 development wells at the Oman 44 Project.
PTTEP wins exploration and production rights to Block 58 in Oman
PTTEP was successful in bidding to obtain the exploration and production rights of Block 58 in Oman with a 100 per cent interest. The Exploration and Production Sharing Agreement (EPSA) will become effective after ratified by Royal Decree of Sultanate of Oman. It is expected that PTTEP will sign the ESPA by June 2006.
The onshore Block 58 covers an area of approximately 2,200 square kilometers. The block is located in the south-west part of the Sultanate of Oman. Primary geological study for the block indicates crude oil potential.
In addition PTTEP’s second project in Oman will allow the company greater opportunity to maximize the value of PTTEP assets and expertise through synergy. Presenting the opportunity for PTTEP to utilize its resources more effectively allowing the sharing of technical knowledge and personnel, which should make the development of Block 58 progress more efficiently.
PTTEP discovers crude oil in Vietnam, exceeding expectations, production plans speeded up
PTTEP will be fast tracking further exploration and development of the project to begin commercial production by the end of 2007. PTTEP was successful in finding significant deposits of crude oil and natural gas in the Vietnam 16-1 Project from the results of exploration wells TGT-1X, TGT-2X and TGT-3X in the Te Giac Trang (TGT) structure in Block 16-1 there were maximum total flow rates of approximately 9,432 barrels of crude oil equivalent per day (BOED), approximately 17,500 BOED and approximately 9,908 BOED.
Significant evidence of the high petroleum potential. The development of Vietnam 16-1 Project and the Vietnam 9-2 Project (which is adjacent to 16-1) are being fast tracked so that production of crude oil and natural gas will start before the original plan of 2009, so that the two blocks can contribute to meeting the rising energy demands.
The Vietnam 9-2 Project has received approval from the Vietnamese government to begin development for commercial production and anticipate production starting up at 20,000 BOED in 2007.
Vietnam 16-1 Project in 2006 will speed up the plans for the drilling of 3 exploration wells to assess the crude oil reserves of the project and apply for approval for commercial development of the 16-1 Project.
The Vietnam 16-1 Project is a joint venture between PetroVietnam 41 per cent, PTTEP Hoang Long 28.5 per cent, Soco Vietnam 28.5 per cent, and Opeco Vietnam 2 per cent. The Hoang Long Joint Operating Company has been set up by the partners to be the operator of the block.
The Vietnam 9-2 Project is a joint venture between PetroVietnam 50 per cent,, Soco Vietnam 25 per cent, and PTTEP Hoan Vu 25 per cent. The Hoan Vu Joint Operating Company has been set up by the partners to be the operator of the block.
Posted by Richard Price, Editor, EnergyME.com
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