PTT Exploration and Production Public Company (PTTEP) said that it will invest THB716.2bn ($24.62bn) in the next five years to increase its production volume and sustain its growth.

The Thai state-owned oil and gas company is aiming to achieve an average petroleum sales volume of around 467,000 barrel of oil equivalent per day by 2024 from its existing assets.

For the year 2020, the Thai oil and gas production company has allocated THB143.01bn ($4.61bn), of which THB82bn ($2.64bn) will be for capital expenditure (CAPEX), while THB61bn ($1.96bn) will be used for covering its operating expenditure (OPEX).

Through the investment, PTTEP is looking to ramp up its total petroleum sales volumes to 11% in 2020 compared to the current year’s target, while steadily growing the average volumes in the next five years.

PTTEP CEO comments on the company’s 2020-2024 budget

PTTEP president and CEO Phongsthorn Thavisin said: “The growth is a result from the successful Expand strategy, including the winning blocks and the acquisitions in our strategic areas – Thailand, Malaysia and the Middle East.

“Most of the 2020 investment budget will be allocated to pursue the Execute strategy in order to maintain volumes in major producing projects, to concentrate on the key development projects so as to start adding new production volumes as planned, and to accelerate exploration activities for future reserves addition and sustainable growth of PTTEP.”

The company said that its focus during 2020 will be on sustaining production plateau at its existing assets like S1 Project, the Arthit Project, Bongkot Project, the Zawtika Project, and the MTJDA Project.

The oil and gas manufacturer also aims at maintaining and ensuring the planned production volumes of the Malaysia Project, projects under Partex, and G1/61 Project (Erawan) and G2/61 Project (Bongkot), which were acquired by it recently.

Another area of focus for the PTTEP investment in 2020 will be on growing future petroleum production volumes from major development projects such as the Mozambique Area 1 Project, the Block H in Malaysia Project, the Algeria Hassi Bir Rekaiz Project, and the Sarawak SK 410B project.

The Thai oil and gas company will also focus on accelerating its exploration activities, primarily in Malaysia and Myanmar, to boost its contingent resources for supporting its growth in the long term.

The company will allocate a part of its investment in innovation and technology development. It has plans to develop robotics for commercial use like inspection-class autonomous underwater vehicle (IAUV), in-pipe inspection robot, and subsea flowline control and repair robot (SFCR).

In July 2019, the company completed $2.035bn acquisition of Murphy Sabah Oil and Murphy Sarawak Oil, the former Malaysian businesses of the US-based Murphy Oil.