Thailand’s oil and gas producer PTT Exploration and Production (PTTEP) has revised downward its average oil and gas sales for 2020 (previously targeted at 388,000 mboe/d in 2020) by less than 5%. Indeed, crude oil sales, which account for 30% of PTTEP's total energy sales, are expected to be directly impacted by the oil price volatility due to the COVID-19 outbreak and the global oil price war. However, gas sales (70% of the sales) have already been secured in accordance with the gas sales agreements.
PTTEP should also benefit from its geographical scope, as the company is focused on Thailand, Malaysia, Myanmar and the Middle East, where operating costs are lower compared to other regions. Yet, the group is considering revising its investment plan and postponing drilling plans of selected projects (not specified). PTTEP, which has set aside US$4.6bn for 2020 exploration plans in Malaysia and Myanmar, could delay some projects. PTTEP will move forward with the Bongkot and Erawan gas projects in the Gulf of Thailand, which could produce 15 bcm/year from 2022-2023 in a production-sharing agreement with the government.