Year 2009

 December 2009

PTTEP joins Chinese partner in Algeria

By YUTHANA PRAIWAN

PTT Exploration and Production Plc has won new exploration rights in Algeria, where it sees a good opportunity to strengthen its investment profile in North Africa.

The company has joined with the Chinese national oil company in the venture in the Hassi Bir Rekaiz block in Algeria, said Anon Sirisaengtaksin, CEO and president of PTTEP.

The wholly owned subsidiary PTTEP Algeria Co (PTTEP AG) and China's CNOOC International Ltd each hold 50% in the venture.

The Hassi Bir Rekaiz block covers 5,670 square kilometres onshore in southeastern Algeria, where the company expects to discover crude reserves over an exploration period of two to three years, he said.

It is the second investment by PTTEP in Algeria. The first, 115 km east of the Bir Seba oilfield, is being developed by PTTEP along with Sonatrach (Algeria's national oil company) and PetroVietnam, where it hopes to start production by the end of 2011.

The investment in Algeria is part of PTTEP's strategic plan to seek opportunities in target countries with high petroleum potential. The goal is to ensure the company's growth and to ensure energy security for Thailand in the long term.

PTTEP recently faced difficulties controlling an oil leak at a well in the Timor Sea off Australia. Operations in the field are now expected to resume in 2011, and not early 2010 as planned earlier.

Analysts have estimated the absence of 30,000 to 40,000 barrels of oil equivalent (boed) production from the Montara field will reduce PTTEP's net profit by about 6% next year.

In the first nine months of this year, PTTEP reported revenue of 82.1 billion baht and net profit of 17.5 billion, down 49.8% from a year earlier, from sales volume of natural gas and condensate averaging 228,314 boed.

In 2010, it expects to lift sales volume to totally 250,000 boed from nearly 240,000 estimated this year.

PTTEP has 41 exploration and production ventures worldwide, including Malaysia, Indonesia, Cambodia, Burma, Vietnam, Oman, Iran, Egypt, Bahrain, Bangladesh, Australia and New Zealand.

Shares of PTTEP closed yesterday on the Stock Exchange of Thailand at 143 baht, up two baht, in trade worth 991.53 million baht.

By Bangkok Post

December 23, 2009

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