PTT Exploration and Production Plc (PTTEP), the only SET-listed upstream petroleum company, is accelerating its exploration and production plan for Australia's Montara offshore block to capitalise on rising oil prices.
Chief operating officer Phongsthorn Thavisin told the Bangkok Post that the company is bringing forward the project, expecting to commence work in the block by the third quarter of this year.
The previous plan had called for a 2018 start.
Mr Phongsthorn said the company expects to find enough petroleum reserves, especially oil, to make the project worth the investment as global oil prices rise.
PTTEP suspended the Montara project in 2014, when oil prices collapsed. The company decided in 2015 to delay the project until 2018 because of incomplete preparation of production equipment.
"With higher global oil prices, we think there is an opportunity to capitalise on the trend as we estimate prices should keep rising, moving in a range of US$45-50 a barrel," Mr Phongsthorn said.
The company cut its sales volume outlook to an average of 312 kilobarrels of oil equivalent per day, down from 331.
PTTEP needs to ramp up production of petroleum from new blocks, particularly from the Montara project, to secure more revenue, Mr Phongsthorn said.
Gas sales have dipped in part because of uncertainty about the government's decision to open a new round of bidding for concessions in the Bongkot and Erawan gas blocks, which expire in 2022 and 2023, respectively.
A final decision on the blocks is due to be made this year.
The Bongkot block is operated by PTTEP, while the Erawan block is operated by Chevron Offshore Thailand.
"We need to increase our oil and gas production, especially oil, which can be sold and generate immediate revenue, unlike gas, in which regulations require that we comply with certain production and sales processes," Mr Phongsthorn said.
For petroleum exploration and production at home, the company will continue to focus on maintaining production capacity through major investment in existing projects in Thailand and Southeast Asia, he said.
PTTEP posted a net profit of US$372 million for 2016 despite volatile global oil prices, reversing a net loss of $854 million the previous year.
PTTEP shares closed last Friday on the Stock Exchange of Thailand at 93.50 baht, down one baht, in heavy trade worth 1.21 billion baht.
