ENP Newswire - 30 April 2014
Release date- 29042014 - PTT Exploration and Production Public Company Limited or PTTEP represented by Mr. Tevin Vongvanich, President and CEO disclosed PTTEP Operating Results in the first quarter as the detail below.
First Quarter Operating Results (Unreviewed): Net profit of USD 380 million
PTTEP and its subsidiaries posted a net profit of USD 380 million (equivalent to 12,435 million baht), a decrease of USD 300 million or 44% against the first quarter of 2013, which was USD 680 million (equivalent to 20,246 million baht). The decrease of 2014 first quarter net profit comprised of the non-recurring items of USD 106 million from the impact of foreign exchange and of the recurring net profit of USD 194 million from the depreciation and the PTTEP Australasia Project's excess drilling costs of H5 development well. However, the company still has a healthy cash flow.
In total, the revenue of PTTEP and its subsidiaries was reported at USD 1,827 million (equivalent to 59,680 million baht), a decrease of USD 79 million or 4% compared to the same period of last year which was USD 1,906 million (equivalent to 56,794 million baht). This was mainly due to the reduction in foreign exchange gain items (non-recurring) at the amount of USD 41 million. Consist of a decrease in average petroleum sales price, which dropped to USD 64.92 from USD 67.03 per barrel of oil equivalent (BOE) in the first quarter of last year, was amounted to USD 13 million.
The average sales volume climbed to 298,621 barrel of oil equivalent per day (BOED) from 291,476 BOED year on year.
A Strong Performance based on Business Strategy
Projects in Thailand S1 project produces an average production rate at 27,436 barrels per day (BPD). The production rate declined slightly from the fourth quarter of last year due to an annual maintenance shutdown. Bongkot project consisted of Bongkot North and Bongkot South fields. The project is now producing natural gas at an average of 934 million cubic feet per day (MMSCFD) and condensate at 31,822 BPD. The total production of natural gas is served about 20% of Thailand natural gas demand.
Projects in South East Asia Located in the Gulf of Martaban, the Republic of the Union of Myanmar. Zawtika project has started to deliver 40 MMSCFD of natural gas to Myanma Oil and Gas Enterprise (MOGE) for domestic consumption.
For gas exports to Thailand, the project is currently in the process of onshore pipeline and facility construction and is expected to deliver first natural gas to Thailand at a rate of 240 MMSCFD by the second quarter this year. Myanmar M3 project is under the drilling preparation process of additional 6 appraisal and exploration wells to prove the commerciality of the project.
Myanmar PSC G and EP 2 project is under a study of the geological structure in order to drill 4 exploration wells. Myanmar MD-7 and MD-8 project, the 2D seismic survey has been completed. At present, the project is ongoing of geological structure study to plan further exploration. Vietnam 16-1 project is located offshore, south-east of Vietnam and produces crude oil at an average rate of 36,826 BPD and natural gas at 29 MMSCFD.
The project successfully completed the drilling of an appraisal well in Area H5 to maintain production levels. In addition, the project is preparing to install production platforms to support the production area which is expected to start the production by 2015.
Project in Australasia PTTEP Australasia project: Montara field produces crude oil at an average rate of 22,000 BPD. Regarding the compensation claims from insurance companies, since the time of the incident until the end of 2013, PTTEP has received a total compensation claim of USD 234 million. The remaining compensation claims approximately of USD 12 million are in progress.
PTTEP expects to receive the remaining claims in 2014 - 2015. With respect to the claim submitted by the Government of Indonesia for compensation for oil leakage caused by Montara incident, PTTEP continues to assess the case with the Indonesian government through the use of scientific evidence to determine the impact (if any). An additional exploration well for Cash Maple filed is planned to drill in the second quarter of this year.
Project in North America Canada Oil Sands KKD project produces bitumen at an average rate of 13,998 BPD. In January this year, PTTEPCA entered into a Partnership Unit Redemption Agreement (PURA) with Statoil Canada Limited (SCL) to restructure the ownership of the five areas of the KKD Project, by exchanging PTTEPCA's 40% of its interest in Leismer and Corner (LC) for an additional 60% in Thornbury, Hangingstone and South Leismer (THSL) plus cash of USD 200 million and an additional amount to be calculated from working capital adjustments related to expenditures and revenues of the KKD Project from Jan 1, 2013 until the closing date (equivalent approximately to USD 235 million as at Dec 31, 2013).
The transaction is subject to the condition precedent to closing prescribed in the PURA, including approval of the Government of Canada, with an expected closing date by the third quarter of this year. At the close of the transaction as prescribed in the PURA, PTTEPCA will hold 100% shares and will operate the THSL fields while also receiving the aforementioned cash amounts from SCL. Meanwhile, SCL will hold 100% shares and operate the LC fields.
Projects in Africa and Middle East Algeria 433a & 416b project is carrying out the construction of processing and pipeline facilities as well as the construction of living quarters and utility facilities. Production is scheduled to begin at the rate of 20,000 BPD by end of 2014. Algeria Hassi Bir Rekaiz project is undergoing preparations to conduct 3D seismic acquisition as well as to drill additional 5 exploration and appraisal wells. Mozambique Rovuma Offshore Area 1 project successfully completed 2 appraisal wells (Orca-2 and Orca-3), encountering natural gas in both wells.
Presently, the project is progressing with the development of offshore natural gas fields, and is planning the development of onshore Liquefied Natural Gas or LNG facilities construction. Besides, the project expects to commence LNG production and sales towards the end of 2018 or early 2019. Kenya L10A and L10B project completed the drilling of an exploration well (Sunbird-1) in the L10A field, but did not discover potential for commerciality. However, the drilling results will be applied for further geological studies.
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