PTTEP unveils its 2023 investment plan and 5-year budget (2023-2027), largely focusing on strengthening the petroleum exploration and production business, expediting the development of projects aimed at reducing carbon dioxide emissions and investing in beyond E&P businesses in preparation for the global energy transition to create sustainable growth in the long term. 

Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), said that considering the challenges of the energy transition and the company’s determination to take part in tackling the global warming issues, PTTEP has therefore adjusted its business strategies to enable sustainable growth. The company will focus on 3 main pillars; Drive Value - strengthen the petroleum exploration and production business, including increase the production volume from existing projects in Thailand to ensure national energy security and accelerate the development of key projects in Southeast Asia and the Middle East. Meanwhile, the company also focuses on Decarbonization to reduce Greenhouse Gas (GHG) emissions by setting forth to achieve net zero greenhouse gas emissions in 2050. The activities cover the Carbon Capture and Storage (CCS) projects, Zero Routine Flare initiative as well as use of renewables and future energy in the company’s operations. Other approaches to decarbonize are the pursuit of emission offsetting through reforestation and mangrove reforestation, and the implementation of “Ocean for Life” strategy to increase biodiversity for the balance and abundance of Thai oceans.  Oceans are considered the main natural carbon sink, as they are capable of absorbing carbon emissions effectively. Lastly, PTTEP aims to Diversify into beyond E&P business such as advanced technology, AI and Robotics, business related to decarbonization and future energy.

To support the execution under the new strategy, PTTEP has set a budget of 2023 total expenditure at USD 5,481 million (equivalent to THB 191,818 million), of which USD 3,152 million (equivalent to THB 110,296 million) is allocated for Capital Expenditure (CAPEX) and USD 2,329 million (equivalent to THB 81,522 million) is for Operating Expenditure (OPEX). The key business activities are as follows;

1. Maximizing production volume, including accelerating exploration activities, developing and producing additional volume from existing assets to strengthen Thailand’s energy security. Main producing projects are G1/61 Project (Erawan, Platong, Satun and Funan fields), G2/61 Project (Bongkot field), Arthit Project, Contract 4 Project, S1 Project and producing projects in Malaysia. CAPEX budget of USD 2,655 million (equivalent to THB 92,925 million) is planned to support such activities.
   
   Additionally, there are plans for activities to reduce GHG emissions from producing assets, with the target of net zero GHG emissions by 2050 through various projects such as CCS, use of renewable energy, installation of equipment to reduce GHG emissions, and pursuit of emission offseting, with a CAPEX budget of USD 53 million (equivalent to THB 1,855 million) allocated for these activities.
    
2. Accelerating key projects’ activities which are under development phase such as Malaysia SK410B Project and Mozambique Area 1 Project to achieve planned production start-up timelines, with a CAPEX budget of USD 322 million (equivalent to THB 11,270 million) planned to support these activities.
    
3. Expediting exploration activities for supporting long term growth. A CAPEX budget of USD 193 million (equivalent to THB 6,755 million) will be used for the geological studies and the drilling of exploration as well as appraisal wells in Thailand, Malaysia, and Oman.

PTTEP has set aside a provisional budget of approximately USD 4,800 million (equivalent to THB 166,052 million) for 2023 – 2027 aimed at expanding into beyond E&P businesses, including the study and development of power and renewables, CCS Initiatives, Carbon Capture and Utilization (CCU), clean hydrogen business, and the commercialization of PTTEP’s technology to ensure readiness of the company for the energy transition.

In accordance with the investment plan, PTTEP expects its average petroleum sales volume from existing projects between 2023 - 2027, per the details below:

Barrel of oil equivalent per day

“Aside from the investment budget allocation for our core business in petroleum exploration and production as well as executing GHG emission reduction plan towards low carbon futures, we have reserved additional budget for investing in beyond E&P businesses, following its strategic direction to create sustainable growth in the long term,” said Mr. Montri.

 KeyFacts Energy: PTTEP Malsysia country profile   l   KeyFacts Energy CapEx News