(EnergyAsia, February 21 2013, Thursday) — Bouyed by increased production and higher oil and gas prices in 2012, Thailand’s leading upstream company PTT Exploration & Production Pcl (PTTEP), said profit surged 28% to a record 57.32 billion baht from 44.75 billion baht in 2011. (US$1=29.9 baht).
Revenue was up 25.8% to 218.14 billion baht while cost rose 26.9% to 118.85 billion baht to yield a 21.68% return on shareholder’s equity.
President and CEO Tevin Vongvanich said the board has approved paying a second half dividend of three baht per share for a full-year total of 5.80 baht per share.
The company said it sold its production at an average price of US$64.86 per barrel of oil equivalent (BOE), up sharply from US$55.49 per BOE in 2011. Its sales volume were also up, by 4.1%, to 275,923 barrel of oil equivalent per day (BOED) compared with 265,047 BOED in 2011, thanks to increased sales of oil and gas from its holdings in Thailand’s offshore Bongkot South and onshore S1 fields, and the 16-1 project in Vietnam.
PTTEP said crude and condensate comprised 71% of its 901 million barrels of oil equivalent (MMBOE) of proved reserves at the end of 2012, and natural gas the remaining 29%. The total reserves, however, do not include the company’s holdings in two gas fields in Vietnam as it has not signed any sales agreement yet on their output.
PTTEP said its assets were worth a total of 601.51 billion baht at the end of 2012, up 34.3% from 447.84 billion baht in2011.
Giving an update of the company’s main projects, Mr Tevin said the S1 Project produced an average 28,000 b/d of crude oil while Bongkot yielded 596 million standard cubic feet/day (MMSCFD).
On the international front, Mr Tevin said he expected the offshore Zawtika in Myanmar to begin gas production next year with development work more than 63% completed.
PTTEP is also working on developing projects in Australia’s Montara field and Mozambique’s Rovuma area which could be producing liquefied natural gas from 2019.
It expects to start production in some of its Algerian oil fields next year while raising oil sands production in Canada from 15,700 b/d in 2012 to 40,000 b/d.
Mr Tevin said he expects PTTEP, which is working on 44 projects worldwide, to have a “very high” chance of making discoveries this year to follow on last year’s successful find rate of 34 out of 54 exploration and appraisal wells.
In an earlier announcement, he said PTTEP is planning to invest a total of US$25 billion over the next five years to develop its upstream assets in Australia East Africa, North America and Southeast Asia, setting the stage for production to at least double to 600,000 BOED by 2020. Last December, the company raised US$3 billion in Thailand’s largest ever equity offering to pay for its acquisition of UK’s Cove Energy Plc, which is developing oil and gas reserves in Mozambique.
The company’s parent, PTT, is looking to invest in liquefied natural gas (LNG) and shale gas projects in North America.