• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days If hydrogen is the answer, you're asking the wrong question
  • 14 hours How Far Have We Really Gotten With Alternative Energy
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs

Breaking News:

Oil Prices Gain 2% on Tightening Supply

Thailand’s PTT Looking To Spend $11B On Oil, LNG Projects

Thailand’s state-owned oil and gas company PTT is seeking investment opportunities for its $11 billion in cash and marketable securities to make up for the decline in oil and gas reserves to 695 million barrels in 2016. This amount will only last for five years at current rates of production, according to analysts, which makes the situation close to critical.

PTT, through its subsidiary PTT Exploration & Production, will target already producing projects in the early stages of development as well as ones that have been cleared to start production, the company’s chief executive Somporn Vongvuthipornchai told Bloomberg, adding that M&A is the only way for the company to grow at the moment.

In terms of deal size, Vongvuthipornchai said PTT will be looking at a range of between a few hundred million dollars and $1 billion, taking advantage of Big Oil’s divestment drive aimed at enabling these companies to maintain dividends. The relative normalization of oil prices has also made it easier for buyers and sellers to come to an agreement on the long-term benefits of potential deals, which will facilitate the asset acquisition process, Vongvuthipornchai also said.

Besides oil, PTT will also be looking for expansion opportunities in liquefied natural gas as demand in Thailand grows: Research and Markets has estimated that this demand is set for a compound annual growth rate of 7.2 percent for the period 2016 to 2025.

Earlier this year, the CEO of the parent company, Tevin Vongvanich, said that PTT planned to raise LNG imports fourfold as local production of gas declines. The plans include boosting the production capacity of Thailand’s only LNG terminal in operation from 5 million tons to 11.5 million tons annually, and building a second one with a capacity of 7.5 million tons. By 2030 both should be running at full capacity.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com: 



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News