Thailand: PTTEP raises hand for 21st E&P round

Thailand: PTTEP raises hand for 21st E&P round

SET-listed PTT Exploration and Production Plc (PTTEP), Thailand's only
upstream petroleum firm, says it's ready to join the 21st round of bidding
for exploration and production (E&P).

The company has not yet decided on the stakes it would hold in each of the
29 blocks open for bids by the end of this year.

President and chief executive Somporn Vongvuthipornchai said PTTEP is still
in talks with partners on the issue of what stake each partner would hold in
each project. PTTEP has many partners in E&P projects at home and abroad.

"We are still in talks with partners because most of the partners, and PTTEP
as well, want to be the biggest shareholder and play the lead role in the
projects," Mr Somporn said.

PTTEP's partners are mostly major global private oil and gas companies,
including state-own E&P companies that it has partnered with in projects
both at home and overseas.

But Mr Somporn said that if PTTEP failed to finalise the proportion of its
stake with partners, it would be ready to joint the 21st round of bidding as
a single E&P operator because it has a firm financial status with strong
cash flow of US$4 billion (135.8 billion baht).

Since the government agreed to impose the powerful Section 44 to solve a
land dispute to allow other business activity, including E&P operation, on
land designated only for agricultural purpose, known as Sor Por Kor, it also
made E&P operations on onshore blocks consisting of Sor Por Kor land lawful.

Mr Somporn said the terms of reference for the 21st round is expected to be
announced to the public by August ahead of the bidding to be held by the end
of the year.

The results are to be announced early next year, he said.

Apart from the 21st round of bidding, Mr Somporn said PTTEP is also ready to
bid for the concession renewal of its Bongkot offshore gas block in the Gulf
of Thailand. The concession is due to expire in 2022.

PTTEP operates the Bongkot gas block, holding a 44.44% stake, while Total
E&P Thailand owns 33.33% and Shell Integrated Gas Thailand Pte Ltd holds
22.22%.

Average output at Bongkot is 900 million standard cubic feet per day, which
the company aims to maintain this year and next.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1274571/pttep-raises-hand-for-21st-
ep-round

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com