Thailand’s national upstream company PTTEP plans to invest more than US$27 billion over the coming five years with the main aims of maintaining production, boosting reserves and developing assets for future output while also capturing new business opportunities for sustainable growth during the energy transition.

Three major projects feature in PTTEP’s 2022-2026 — Lang Lebah on Block SK 410B offshore Sarawak, Malaysia; the Mozambique Area 1 project; and phase two of the Hassi Bir Rekaiz field development in Algeria.

Next year alone, the operator envisages capital investments totalling $457 million to advance these projects.

In tandem, PTTEP in 2022 plans to invest $262 million to accelerate exploration and intends to drill exploration and appraisal wells including in Malaysia, the United Arab Emirates and Mexico.

Maintaining the production plateau of existing asset also features highly on the company’s agenda with the Bongkot, Arthit and S1 fields in its native Thailand, the Block 61 project onshore Oman, and Zawtika offshore Myanmar all set to receive funds from next year’s $2.449 billion capex budget.

“With regards to [the] 2022 investment budget allocation, PTTEP aims to maintain production volumes from the major assets as well as raising outputs from Bongkot and Arthit fields to serve domestic demand of the country,” said PTTEP chief executive Montri Rawanchaikul.

“For the five-year plan, we will focus on accelerating the development of oil and gas fields in Malaysia after series of successful petroleum discoveries.

"Based on the investment plan over five years, the company expects a compound annual growth rate at around 5%.”

PTTEP’s five-year investment plan (2022-2026) totals $27.164 billion, comprising $16.534 billion capex and opex of $10.63 billion.

Upwards of $5 billion will be spent annually with next year earmarked for the greatest investment with $5.666 billion, followed by 2024 in close second with $5.633 billion.

The Thai company’s production looks set on an upward trajectory with expected sales volumes of 467,000 barrels of oil equivalent per day in 2022 gradually increasing to 528,000 boepd in 2026, except for a slight blip when it is forecast to slide to 463,000 boepd in 2023 before recovering the following year.

“Meanwhile, PTTEP targets to invest in new businesses (beyond E&P) during energy transition period, leaping for low-carbon organisation to create sustainable growth in the long term,” added Montri.

Key new businesses on PTTEP’s radar include renewable energy, the commercialisation of in-house technologies, new forms of energy (future energy) such as hydrogen, carbon capture and utilisation, AI and robotics, as well as the study and development of gas to power.

The five-year budget is also allocated to activities related to environment, society and corporate governance, such as greenhouse gas management and corporate social responsibility projects, for the sustained value creation to all stakeholders, PTTEP said on Wednesday.