PTT Exploration and Production Plc (PTTEP) has announced planned expenditure for 2020 of US$4.61 billion, equivalent to 139 billion baht.
Of the 2020 budget, $2.65 billion is capital expenditure and the remaining $1.97 billion is operating expenditure.
Phongsthorn Thavisin, president and chief executive, said PTTEP has many strategic plans next year.
"In 2020, PTTEP will focus on capital expenditure for three business objectives: maintaining production of existing projects [$1.94 billion], increasing production volume in the future [$425 million] and discovering contingent resources [$281 million]," he said.
PTTEP's existing projects are the S1 in Sukhothai, Phitsanulok and Kamphaeng Phet, the Bongkot in the Gulf of Thailand, the Arthit in the Gulf of Thailand, the MTJDA in the Gulf of Thailand and the Zawtika Project in the Gulf of Martaban.
It has three main development projects, the Block H in Malaysia, the Rovuma Offshore Area 1 in Mozambique and the Hassi Bir Rekaiz in Algeria to start production as planned.
PTTEP is accelerating development of the Sarawak SK 410B in Malaysia after a successful discovery in 2019, aiming to reach a final investment decision.
Moreover, PTTEP has announced its five-year investment plan for 2020-24, totalling $24.6 billion, equivalent to 716 billion baht.
Some $14.2 billion of the total budget is capital expenditure, while $10.4 billion is the operating expenditure.
In accordance with the five-year investment plan, PTTEP expects a compounding annual growth rate of sales volume for 2020-24 of 6%.
The expected average petroleum sales volume from existing assets in 2020 will be at 388,000 barrels of oil equivalent per day (BOED), a 11% rise from the 2019 target.
In 2024, the petroleum sales volume will reach 467,000 BOED with a steady growth, said Mr Phongsthorn.
Furthermore, PTTEP emphasises transforming its organisation and adopting technology and innovation to enhance its efficiency, being agile amid the new industry landscape.
PTTEP also evaluates new business opportunities such as a gas-to-power business in Myanmar where PTTEP can add value to the existing natural gas fields, and its artificial intelligence business through its subsidiary: AI & Robotics Venture.
"This investment plan is carried out under the principles of sustainable development in aspects of economy, society and environment in order to ensure a sustainable value creation for all stakeholders," said Mr Phongsthorn.
