PTTEP Require Third Share Holder for Erawan-Bongot Exploration Concession.
25-2-2019–Today after Erawan-Bongkot Petroleum Exploration contracts signing ceremony Mr.Phongsthorn ThavisinPTTEP President and CEO disclosed that it’s possible for PTTEP to consider additionalshare holder for G1(Erawan) and G2 (Bongkot) petroleum exploration concession operation to reduce the risk by might have some shares of these two petroleum plots to swap withother asset of other company.
He said in his personal view “Its better for Erawan-Bongkot petroleum exploration project to have third share holder to halp balancing the conflict between two share holders and to be easier to unify the idea in difference.”said PTTEP President and CEO.
“The consideration to have more shareholder for the concession will not be made soon as it must wait until the existing conversation of present consessioniar end in 2022 and the PSC contracts we signed effective or around the year 2023-2024 then we will have the right to propose for additional share holder.This idea must be approved by the concessionair companies executive board.”
“Mutsui Oil & Exploration and Chevron has been familiar in this region for a long time, then both of them are one of the target companies that we plan to approach.”said PTTEP President and CEO.
At the beginning the project seems not interesting for other investor to join PTTEP to bid for the concession but in the future if PTTEP can have the project well operated by the vision of “Energy of Choice”that many alliance want to select, then there might be good sttategic alliance willing to be our partners.”said PTTEP President and CEO.
Mr.Pongsathorn PTTEP President and CEO disclosed that the transition team has been prepared to cooperate with
the existing concessionair to have the rig operational factors gradually transfered from now till their concession end on 2022.
He disclosed about the CAPEX and OPEX (Capital Expenditur and Operation Expenditure) plan of Erawan and Bongkot ten-years exploration that it was plan to invest almost 1 trillion Baht in ten years, comprised of 500 Million USD CAPEX /project/year, Bongkot’s OPEX 300-400 Billion Baht for the whole ten years and Erawan 600-700 billion baht for the whole ten years.
The source of fund for the CAPEX and OPEX would be selve-funding, as now PTTEP has 4 billion baht cash flow remain that need more projects to have it optimized.
By the way even the concession will make the profit per gas unit reduced but by the economy of scale that make PTTEP has more work to do, while National Power Development Plan (PDP2018) set to increase Gas consumption ratio from 30% to 50%, it will make PTTEP can maintain its over all profit no less than previous year’s, according to Mr.Montri Rawanchaikul PTTEP Executive Vice President Strategy and Business Development Group.
