PTTEP scouting Timor Sea to share LNG equipment

PTT Exploration and Production Plc (PTTEP), the only SET-listed upstream petroleum firm, is seeking partners to start producing gas output from its Australian unit’s Cash and Maple project in the Timor Sea.

President and chief executive Somporn Vongvuthipornchai said the production will be in the form of liquefied natural gas (LNG) in order to meet rising global demand.

He said previously that PTTEP had planned to develop a floating storage regasification unit (FSRU). The company changed the plan after a feasibility study showed that building the FSRU might not be viable since global oil prices remain relatively low.

Mr Somporn said global oil prices average US$50-55 per barrel, and the company estimated that producing gas from Cash and Maple was a more viable alternative.

PTTEP is looking for potential partners that operate near the Cash and Maple project. The company plans to share gas production facilities and gas pipelines with other LNG operators in order to cut production costs.

The Cash and Maple gas field is in the preliminary concept stage for conventional LNG options, with an estimated gas reserve of 3-4 trillion cubic feet.

Cash and Maple is located about 680 kilometres west of Darwin, 700km northeast of Broome and 200km south of the Indonesian coastline.

Mr Somporn said the final investment decision (FID) has yet to be made, as the company will require time to seek partners and form a business model.

Other gas resources that need FIDs this year include Mozambique’s Rovuma Offshore Area 1, Algeria’s Hassi Bir Rekaiz and Contract 4 (Ubon Project) in the Gulf of Thailand.

“We will submit the production plan for all projects within this year before FIDs are made,” Mr Somporn said.

This year, PTTEP aims to produce at least 300,000 barrels of oil equivalent per day (boed) of petroleum to maintain earnings and meet strong demand, 6% lower than last year’s output of 320,000 boed.

The company plans to rev up production at certain petroleum resources to offset declining output from ageing resources that require upgrades.

Meanwhile, the prime minister has announced that Thailand and Cambodia are close to sealing an agreement to develop the Stung Meteuk Hydro Power Plant.

The project is expected to generate power to serve economic zones in the two countries, which are set to be developed along their border.

Twarath Sutabutr, director-general of the Energy Policy and Planning Office, said power generated by the project will be part of the basic infrastructure for the economic zones. Commercial operations for the project are scheduled for 2023.

PTTEP shares closed yesterday on the Stock Exchange of Thailand at 94.50 baht, up 50 satang, in trade worth 442 million baht.