Thai PTTEP lowers 2011 petroleum sales target

BANGKOK: Thailand's top oil and gas explorer, PTT Exploration and Production Pcl (PTTEP), has cut its 2011 petroleum sales target because the second half is likely to be weaker than expected, its chief executive Anon Sirisaengtaksin said.

This year's sales target was now 269,000 barrels of oil equivalent per day (Boepd) rather than 273,000, he told an analysts' briefing yesterday.

“Petroleum sales are not in line with our target and the second half should be lower than the first because of some maintenance shutdowns,” Anon said, adding second-half sales should be close to 269,000 Boepd.

PTTEP, the flagship in the upstream exploration business of top energy firm PTT Pcl, had sales of 272,307 Boepd in the first half.

Last week, the company reported a 5.4% rise in quarterly net earnings, boosted by higher average selling prices in line with crude oil prices. During that period, global benchmark Brent crude rose to a high around US$126 a barrel in early April, before falling to around US$105 in late June.

Brent crude has recently taken a hit as fears of a global economic slowdown led to commodities sell-off that has erased the benchmark's 2011 price gains.

Anon said PTTEP had shut down part of Bongkot gas field in the Gulf of Thailand and planned to stop operations at Yadana and Yetagun in Myanmar and the Malaysian-Thai joint development area for a week or two in the fourth quarter.

PTTEP, which ranks among Asia's top 10 explorers and vies with big Chinese oil firms such as CNOOC and Sinopec, is involved in 44 oil and gas exploration and development projects.

The company expected its oil sands project in Canada to produce an average 10,000 barrels per day (bpd) this year and its Vietnam's Block 161 would begin production of 20,000 barrels per day in August, he said.

Output at the Vietnam field will rise to 40,000 bpd at the end of this year and its fields in Algeria will begin operations in 2014 with an estimated output of 20,000 bpd in the first phase.

PTTEP, which operates four blocks M3, M7, M9 and M11 in Myanmar, expected to conclude a deal to find a partner to invest in Block M11 later this year, Anon said.

The company planned to invest US$4.47bil in 2011 and US$17bil in the next five years, he said. - Reuters