PTTEP contracts Myanmar petroleum concessions

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BANGKOK, Jan 5 –Thailand’s state-owned PTT Exploration and Production (PTTEP) on Thursday signed an agreement with Myanma Oil and Gas Enterprise (MOGE) for an investment in Myanmar’s Zawtika M9 gas field.

PTTEP president and chief executive Anon Sirisaengtaksin said petroleum and natural gas production will start in 2013 with a production capacity of 300 million cubic feet/day, with 240 million cubic feet to be distributed to Thailand daily. MOGE holds a 20 per cent stake in the investment, he said.

Granted rights by Myanmar, PTTEP will also begin exploring the country’s two onshore oil blocks, EP2 and G, on Wednesday.

The Thai company is investing in neighbouring Myanmar to build ties between the nations and to secure energy for Thailand.

Mr Anon said PTTEP expects petroleum sales to rise to 290,000 barrels/day this year, an increase of 8 per cent. Petroleum sales volume were 265,000 barrels/day in 2011.

PTTEP current main production centre in the Greater Bongkot South project in the Gulf of Thailand will begin production in March at 300 million cubic feet/day, and its Australian Montara field will resume in either Q2 or Q3 at 30,000 barrels/day.

The firm began producing oil in the Vietnam 16-1 Project in Sept 2011, with full production capacity beginning this year at 30,000 barrels/day.

The company’s investment strategies include collaboration with the PTT Group in petroleum exploration and with partners such as Statoil to seek investment opportunities in the United States, South America and Africa, whereas the Browse LNG project in Western Australia and other investment sources in Thailand and Asian countries such as Malaysia also have PTTEP’s interest.

This year’s investment total was set at Bt150 billion, said Mr Anon, out of which Bt100 billion is for construction, Bt20 billion for drilling and exploration, and Bt30 billion for management.

PTTEP’s five-year investment plan reached a total of Bt600 billion, with Bt350 billion earmarked for construction. The company aims to produce oil at 900,000 barrels/day in 2020.