Home 06

PTTEP sells 20% of two blocks


By Aung Shin , Wednesday, 2 September 2015 Myanmar Times 

 

A subsidiary of Thailand’s state-owned PTT Exploration and Production has sold a 20-percent stake in two of its Myanmar onshore blocks, according to a company announcement.

PTTEP South Asia sold a 10pc interest in onshore blocks PSC-G and EP-2 to Japanese Mitsui Oil Exploration and another 10pc to Thailand Palang Sophon Offshore, according a notice published on the Stock Exchange of Thailand yesterday.

The transaction has been approved by Myanmar authorities, according to the notice. The company’s president Tevin Vongavanich said the divestment is aimed at adding value to the project and managing risk.

Both onshore blocks are located in the central Myanmar basin covering 13,330 square kilometres in block PSC-G and 1345 sq km in EP-2.

The Thai company was awarded the right to exploration and production of oil and gas in the two blocks in a 2011 onshore bidding round. Its local partner for the projects is Win Precious Resources.

PTTEP will continue to operate the blocks with a 70pc controlling stake, while Win Precious Resources will maintain its 10pc holding.

The Thai energy giant has adjusted its five-year investment plan to cope with fluctuations in international oil prices. “We have initiated the ‘SAVE to be SAFE’ project to reduce operations costs,” said Mr Vongvanich earlier in a statement.

The company’s capital and operating expenditure will be around US$24.3 billion over this period – overall investment for 2015 alone is $4.8 billion. Around 52pc of this will go toward projects in Thailand and 20pc to projects elsewhere in Southeast Asia, mostly in Myanmar, a spokesperson for the company said earlier this year.

Much of this will go toward maintaining production levels for the company’s existing Zawtika offshore project in the Gulf of Martaban, and development of its M-3 gas project which was found to be commercially viable in 2013.

The company will also fund study of the potential of onshore blocks PSC G, EP-2 and MOGE-3, and offshore blocks MD-7 and MD-8.

PTTEP has been in Myanmar for 25 years operating a number of oil and gas projects. The company’s global investment was $10 billion last year with more than $1 billion invested in Myanmar.

Profits at Thailand’s largest oil company have dropped 31pc in the first quarter of 2015 due to falling global oil prices, PTTEP reported at the end of April.

Read More

 

 

 

© 2014 Pacific Hunt Energy Pte Ltd. All Rights Reserved.