LNG Journal editor
Thailand’s national energy company, PTT Exploration and Production Public Co, said it would speed up its final investment decision process for its stake in the Mozambique LNG project as it posted annual net profits of 36,202 Thai baht ($1.120 billion), a jump of almost 90 percent on its earnings in the previous year because of higher sales volumes and price.
PTTEP is a 10 percent shareholder in the Area 1 licence of the Rovuma Basin offshore the southeast African nation held by Anadarko Petroleum of the US.
Other shareholders with PTT are Japanese trading house Mitsui & Co. and three Indian companies, Bharat Petro Resources, ONGC Videsh and Oil India Ltd., as well as the Mozambique state-owned oil and gas firm ENH.
“PTTEP will speed up the final investment decision process for key pre-sanction projects, especially the Mozambique Rovuma Offshore Area 1 which is targeted within the first half of 2019,” said Phongsthorn Thavisin, PTTEP President and Chief Executive.
The Thai company said the first phase of LNG production in the southeast African nation is planned for 2024 with initial volumes of 12 million tonnes per annum.
“The government approval of Plan of Development (POD) in the Golfinho-Atum offshore area was significant along with negotiations on a construction agreement for the liquefaction plant,” said PTTEP.
“In addition, the overall Mozambique project is now being finalized and the signing of long-term LNG Sale and Purchase Agreements (SPAs) with potential buyers are taking place,” it added.
“Furthermore, the company also strengthened the exploration activities of its projects particularly in Myanmar and Malaysia, while seeking new investment opportunities in Southeast Asia and the Middle East to support long-term growth and enhance petroleum reserves,” stated the company.
In annual earnings highlights, the Thai company noted its acquisition of Royal Dutch Shell’s 22 percent interest in the Bongkot field in Gulf of Thailand earlier in 2018 for $750M.
“PTTEP continues to pursue investment plans, accelerate projects to final investment decision and strengthen reserves from exploration as well as capture opportunity in strategic locations both Southeast Asia and the Middle East,” said PTTEP.
The United Arab Emirates, the LNG producer that is expanding its natural gas and oil exploration in Abu Dhabi, has signed two concession agreements with Italian energy company Eni and PTTEP.
Eni has acquired a 70 percent stake in the Offshore Block 1 and Offshore Block 2 exploration areas in Abu Dhabi waters for a duration of 35 years while PTTEP has a 30 percent share.
The two blocks, located in the northwest of the Abu Dhabi emirate, were the first blocks to be awarded among those that were offered for commercial bidding by the Abu Dhabi National Oil Company in April 2018 as part of Abu Dhabi’s first-ever open block licensing strategy.
PTTEP said in its earnings report that higher average sales volume of 305,522 barrels of oil equivalent per day in 2018 were higher than the 299,206 BOE per day in 2017 as a result of the acquisition of Shell’s stake in the Bongkot project to give PTTEP a more than 66 percent shareholding.
“Regarding the winning of Bongkot and Erawan bidding late last year, PTTEP is preparing to sign Profit Sharing Contracts and will proceed to the transition and investment plans to deliver committed volumes from both gas fields to ensure energy security of the country,” stated PTTEP.
“The average selling price also improved following the rally of global crude prices to $46.66 per barrel of oil equivalent (BOE), or 19 percent more than the $39.20 average price in 2017,” it added.
“PTTEP’s financial position remains strong with operating cash flow of $3.27Bln,” said the company.
CEO Thavisin said the company would be moving forward again n 2019.
“Recently, the company has been granted the concessions of 2 offshore blocks in the United Arab Emirates and this marks our significant step in returning to the Middle East, which is considered as the strategic investment destination,” explained Thavisin.
“This opportunity granted to PTTEP to partner with world-class E&P companies, demonstrates our strategic alignment with the new vision of ‘Energy Partner of Choice’, strongly emphasizing long-term value for all stakeholders,” added the CEO.