1. No category

PTT Exploration and Production Public Company Limited
Thailand Major Forum
Thanachart Securities Public Co. Ltd.
October 10, 2014
Disclaimer
Forward-looking Information
The information, statements, forecasts and projections contained herein reflect the Company’s current views with respect to future events and financial performance.
These views are based on assumptions subject to various risks. No assurance is given that these future events will occur, or that the Company’s assumptions are
correct. Actual results may differ materially from those projected.
Petroleum Reserves and Resources Information
In this presentation, the Company discloses petroleum reserves and resources that are not included in the Securities Exchange and Commission of Thailand (SEC)
Annual Registration Statement Form 56-1 under “Supplemental Information on Petroleum Exploration and Production Activities”. The reserves and resources data
contained in this presentation reflects the Company’s best estimates of its reserves and resources. While the Company periodically obtains an independent audit of a
portion of its proved reserves, no independent qualified reserves evaluator or auditor was involved in the preparation of reserves and resources data disclosed in this
presentation. Unless stated otherwise, reserves and resources are stated at the Company’s gross basis.
This presentation may contain the terms “proved reserves”, “probable reserves”, and/or “contingent resources”. Unless stated otherwise, the Company adopts
similar description as defined by the Society of Petroleum Engineers.
Proved Reserves - Proved reserves are defined as those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with
reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods,
and government regulations.
Probable Reserves - Probable reserves are defined as those unproved reserves which analysis of geological and engineering data suggests are more likely than not
to be recoverable.
Contingent Resources - Contingent resources are defined as those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from
known accumulations, but which are not currently considered to be commercially recoverable. The reasons for non commerciality could be economic including market
availability, political, environmental, or technological.
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Agenda
Company Overview
Thai Energy Reform on PTTEP
Growth Strategy
3
3 / 18
PTTEP as a Thai National Oil & Gas Company
Serve national agenda whilst meet the interests of all stakeholders
PTTEP is E&P flagship for PTT Group and Thailand
Secure reliable supply crude oil & NG to Thailand
Grow reserves & production domestically &
internationally to hedge risk of national energy supply
Provide fair return to shareholders & stakeholders
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Leading Regional Exploration and Production Company
Largest publicly-listed E&P company in Southeast Asia (“SEA”)
…is a subsidiary of PTT Public Company
Limited
rd largest company on
PTTEP is the 23nd
the Stock Exchange of Thailand ("SET")…
(US$bn)
Shareholding structure
PTT
32.49
ADVANC
Others
34.7%
20.34
PTTEP
19.09
SCB
18.87
KBANK
PTT
65.3%
17.41
Note: As of 8 August 2014
SCC
16.57
CPALL
12.04
BBL
11.83
AOT
10.30
KTB
10.21
…and is on par with sovereign ratings
Source: Bloomberg, 3 October 2014
PTTEP
Thailand
Moody’s
Baa1
Baa1
S&P’s
BBB+
BBB+
JCR
A-
A-
TRIS
AAA
N/A
Note: Corporate ratings for PTTEP; Country ratings for Thailand
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Internationally Diversified and Balanced Portfolio
Worldwide operations: 45 projects* in 11 countries
Oil Sands
Southeast Asia (16)
6 Production
10 Exploration
North America (1)
1 Exploration
 Vietnam
 Indonesia
 Myanmar
 Canada
Piped Gas
Deepwater Oil
South America (2)
2 Exploration
Africa and Middle East (7)
1 Production
1 Development
5 Exploration




 Brazil**
Algeria
Mozambique
Kenya
Oman
Deepwater Gas
(LNG)
PTTEP’s Asset Base by Book Value (as of June 30, 2014)***
SE Asia
14.6%
Notes:
* Excludes 3 projects that are pending official
withdrawal approval
** 1 project subject to approval from the
government of Brazil
*** Other segments and unallocated assets are
considered Corporate / Head Office asset, hence
classified under "Thailand“
Thailand (18)
14 Production
1 Development
3 Exploration
Thailand
51.4%
Africa and
Middle East
11.7%
Australasia
12.6%
Americas
9.7%
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Oil
LNG
Australasia (1)
1 Production
 Australia
Strong Operational and Financial Capabilities
Consistently solid growth, EBITDA margin and dividend payout
One of the industry’s low-cost operators
Solid growth track record
Sales Volume (KBOED)
265
2013 Operating Expense (USD / Production BOE)
307
292
276
10.4
11.9
12.9
13.5
12.9
6.9
2011
2012
2013
1H 2014
Peer E&P Companies*
Stable EBITDA margin with strong cash flow
Op. Cash Flow (bn USD)
5.0
69%
Consistent history of dividend payment
THB / Share
EBITDA Margin (%)
71%
70%
71%
80%
10
3,675
2,876
5.40
2.5
1,778
0.0
40%
2012
2013
1H
38%
40%
5.80
6.00
40%
5
25%
3.00
0%
2011
50%
40%
3,470
Payout Ratio (%)
0
2014
0%
2011
2H
2012
1H
Note : Peers include CNOOC, Santos, Woodside Petroleum, Petrobras and Murphy Oil
7
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2013
2H
2014
Agenda
Company Overview
Thai Energy Reform on PTTEP
Growth Strategy
8
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Supporting Thailand’s Energy Supply Chain
Thailand is a net energy importer, and needs to secure energy supply
Energy Demand and Sources
49%
~ 1.0m BOE/D
2013 Energy Demand
~ 2 million
BOE/D
42%
~ 0.8m BOE/D
Crude Oil &
Condensate
Imports
~ 78%
Indigenous ~ 22%
Thailand Petroleum Production 2014
Integration with
Midstream and
Downstream Value Chain
% by Petroleum Type and Area
Midstream
Crude and
Condensate
Onshore
7%
24%
Natural Gas
76%
Transmission Pipelines
Gas Separation Plants
Offshore
93%
Natural Gas
% Production by Company
Downstream &
End User Products
Imports ~ 20%
Indigenous
~ 80%
9%
~ 0.2m BOE/D
Coal, Lignite,
Hydro and
Others
Source: Energy Policy and Planning Office (EPPO) data as of 2013
Chevron
30%
Others
PTTEP
29%
9%
8%
BG
5%
7%
5% 7%
Total
Hess Petronas
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Mitsui
Refineries
Petrochemical Plants
Power Plants
Electricity
Industrial Plants
Transportation
Fuels, Lubes, NGV/CNG
Household Use and Products
LPG
Chemical Products
Thai Energy Reform : Impact on PTTEP
Lingering questions
21st
Contract 1-3, 5
Bongkot
Renewal of
expiring concessions
21st Petroleum
Bidding Round
B5
B6
OCA
B7
Production
Sharing
Contracts
Concessions
B8
B9
B10
B11
B12
Expiring
Concessions
G9/43
B13
B14
Petroleum
Fiscal Regime
10
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Overlapping Claims Area
(Thai – Cambodia)
Thailand’s Energy Supply at Risk
Steps to be done to minimize burden of LNG imports
Million Cubic Feet per Day @1000 BTU/SCF
8,000
Gas Demand
7,000
6,000
LNG Imports
5,000
4,000
Myanmar
Potential in SEA
3,000
2,000
GoT Expiring Concessions
1,000
Gulf of Thailand (GoT)
0
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Source : PTT Group, TIGS May 2013
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2022
2023
2024
2025
2026
2027
2028
2029
2030
Expiring Concessions in 2022 - 2023
Final decision required at least 5 years prior to concession expiry
Contract I,II,III,V
Contract I
Chevron* 80%,
MOECO 20%
Contract II
Chevron* 70%,
MOECO 30%
Contract III
Chevron* 71.25%,
MOECO 23.75%,
PTTEP
5.00%
Contract V
Chevron* 70%,
MOECO 30%
Bongkot
Bongkot
PTTEP* 44.45%,
Total
33.33%
BG
22.22%
* Operator
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Fiscal Regime : Concession vs. PSC
Balancing the appropriate government take with the country’s petroleum potential
Government Take (% of Revenue)
100%
90%
Royalty System
Production Sharing Contract (PSC)
Service Contract
Royalty + Service Contract
Venezuela
Malaysia
Indonesia Std.
Norway Egypt
Columbia Trinidad
80%
India
TOUGH
Turkmenistan
Bangladesh
Guatemala
60%
Australia
Thailand
Philippines
Chile
Belize
Bolivia
NZ
Nicaragua
50%
40%
Azerbaijan
China
Timor
E. Indo
70%
Nigeria
US Gulf
SWEET
Argentina
Spain
30%
Ireland
20%
Low
Low
Source : Daniel Johnston (2008), DMF
Moderate
Moderate
Petroleum Prospect
13
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High
High
Agenda
Company Overview
Thai Energy Reform on PTTEP
Growth Strategy
14
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PTTEP Three-Pronged Strategy
Balanced approach to become a BIG, LONG and STRONG E&P company
VISION
Become a leading Asian E&P company through technology and green practices
“BIG”
Production target of
600 KBOED by 2020
“LONG”
“STRONG”
Proved reserves life
at 10 years
Competitive ROE
Maintain
Credit Ratings
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Reserves and Resources Base
Large resources base to support sustainable growth
LONG
2013 by Geography
Reserves /
Resource Life*
MMBOE
Domestic
International
5,000
4,406
4,406
37 Years
3,986
4,000
74%
3,217
3,000
2,200
1,706
2,700
1,350
2,000
14 Years
P1
898
885
860
969
901
846
2011
2012
2013
1,000
53%
846
47%
53%
47%
26%
P1 + P2
(P1 + P2 + 2C)
Reserves
7 Years
Resources Base
2013 by Product Type
Gas
0
Liquid
4,406
Proved (P1)
Probable (P2)
44%
Contingent (2C)
5-Year Average Proved Reserves
Replacement Ratio (RRR)
2011
2012
2013
1.10x
0.91x
0.82x
1,706
846
30%
70%
P1
* Based on total production of natural gas, crude oil (including bitumen) and condenstate of 329 KBOED for the year ended December 31, 2013
Reserves and resources data as of year-end 2013, prior to the KKD asset swap transaction announced on January 30, 2014
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42%
56%
58%
P1 + P2
Reserves
(P1 + P2 + 2C)
Resources Base
Target Production at 600 KBOED by 2020
BIG
Clear visibility on growth strategy through international growth and
opportunistic M&A
Production Volume (KBOED)
600
Evaluate New Exploration and M&A Potentials
M&A targets :
- Southeast Asia producing assets
- High potential prospects
(North America shale assets
with high liquid content)
Discovered Prospects :
- Cash / Maple
- Algeria HBR
New Frontiers:
- Mozambique and Kenya
~400
Growth from International Projects Start-ups and Ramp-ups
Near-term Growth :
- Montara
- Vietnam 16-1
- Zawtika
- Algeria 433a & 416b
Long-term Contributors :
- Myanmar M3
- Mozambique Offshore
Area 1
- Canada Oil Sands
329
~250
Maintain Production Plateau in Domestic Projects
Thailand :
- S1
- Bongkot
- Pailin
- Arthit
- MTJDA
2013
17
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2020
Effective Investment Allocation
Asset rationalization to sustain strong and competitive performance
Total Expenditures (2014-2018)*
Acquisitions
MMUS$
=
$25 bn
CAPEX
=
$16 bn
OPEX
=
$ 9 bn
STRONG
6,000
328
2,010
1,679
1,742
4,000
1,671
1,535
2,000
1,775
3,388
3,562
2013
2014
2015
2016
2017
2018
4,824
5,398
5,241
4,745
5,256
4,641
2,961
3,074
3,514
2,866
0
Total
Expenditures
* Excludes expenditure for M&A opportunities and after KKD asset swap,
18
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Q&A
Exploring new horizons, we take every step as learning
For more information, please visit our website at
http://www.pttep.com
OR
Contact us via email address at
[email protected]
OR
Call us at +66 2 537 4000
19
Supplementary Index
1.
Details to 1H 2014 Financial Performance
2.
Thailand’s Energy Outlook
3.
Relationship with PTT Plc
4.
Overview of PTTEP’s Key Focus Areas
5.
PTTEP Project Information
6.
PTTEP Management Team
7.
2013 Awards and Recognitions
8.
Corporate Social Responsibility
9.
Human Rights
10. Organization Structure
11. Ratio Formulas
20
Sales Volume, Price and Unit Cost
Record volume coupled with higher prices
Sales Volume and Price
Liquid
Unit Cost
Gas
Cash Cost
BOED
300,000
275,923
92,609
34%
200,000
307,263
292,629
32.22
104,254
100,831
30
C
183,314
191,798
66%
66%
203,009
Gas ($/MMBTU)
Liquid ($/BBL)
Weighted Avg. ($/BOE)
(High Sulfur Fuel Oil)
Revenue Mix
(Gas : Liquid)
14.47
14.95
16.69
10
66%
0
2012
Avg. HSFO ($/BBL)
33.94
34%
34%
0
Avg. Dubai ($/BBL)
39.43 C
40
20
100,000
Unit Cost
$/BOE
2013
7.59
7.92
103.27
100.15
64.86
65.58
2012
1H 14
A
7.96
DD&A
B
66.35
13.61
15.33
20.08
Royalties
7.80
7.65
7.14
G&A
3.09
3.17
2.63
2.11
1.61
1.47
5.61
6.18
8.11
4.28
4.88
5.60
43:54
38:55
17 : 22
Exploration Exp.
109.03
103.26
105.54
105.22
97.52
95.60
D
Operating Exp.
Lifting Cost
46 : 54
47 : 53
1H 14
A
102.82
B
2013
E
Success Ratio
47 : 53
If exclude extra expense from Montara’s Development well (H5) :
1H 14 Operating Exp. : 6.99 $/BOE / Cash cost 15.56 $/BOE / Unit cost : 38.31 $/BOE
D) Exclude diluent cost for blending bitumen in KKD Oil Sands project
E) Exploration and Appraisal wells
C)
A) If Vietnam 16-1 retroactive sales are excluded, gas price is
$ 8.01 for 2013 and 8.04 $ for 1H 2014
B) If Vietnam 16-1 retroactive sales are excluded, average selling price is
66.09 for 2013 and 66.84 for 1H 2014
Supplement
C
21
1.1 / 11
1H 2014 Cash Flow Performance
Strong operating cash flows from stronger sales volume
Source & Use of Funds 1H 2014
Cash Flow Performance
MMUSD
MMUSD
KBOE/D
4,000
3,470
4,000
400
3,675
3,761
2,908
3,000
3,000
300
Sales Volume
2,000
1,778
2,000
200
1,000
1,000
Operating Cash Flows*
0
EBITDA
Margin
2012
2013
70%
71%
100
-
1H 2014
Sources **
71%
Operating Cashflows
KKD Swap Asset
Bonds Issuance
( Hybrid Bond + THB Bond )
Uses
CAPEX
Dividends Paid
Financing Activities
Hess TH Acquisition
* Net of adjustment for the effect of exchange rate changes on cash and cash equivalents. Operating cash flows before exchange rate effect adjustment is:
2012 = 3,455 MMUSD ; 2013 = 3,740 MMUSD ; 1H 14 = 1,783 MMUSD
** Operating cash flow included in Source of funds in 1H 14 is shown net of adjustment for the effect of exchange rate changes on cash and cash equivalents
Supplement
22
1.2 / 11
1H 2014 Financial Position
Healthy capital structure with low gearing and cost of debt
Capital Structure
MMUSD
D/E Ratio
25,000
21,572
19,637
20,000
5,830
5,153
15,000
4,023
3,773
10,000
0.80
4,274
0.60
0.32
11,719
10,711
5,000
5,352
0.40
0.34
0.35
1.00
22,877
13,251
0.20
0
0.00
2012
Asset
Assets
2013
Equity (LHS)
Debt Profile*
CAD
13%
1H 2014
Interest Bearing Debt (LHS)
Other Liabilities (LHS)
Gearing Ratio D/E (RHS)
CAD
10%
CAD
11%
US$
89%
US$
87%
US$
90%
Weighted Average
Cost of Debt* (%)
3.99
3.99
4.13
[Fixed : Floating]
[79 : 21]
[75 : 25]
[76 : 24]
7.50
6.81
7.51
Average Loan Life*(Years)
* Excludes Hybrid bonds
Supplement
23
1.3 / 11
Thailand’s Energy Outlook
Natural gas – energy for the future
Gas Consumption
Energy Consumption
KBOED
2,800
MMSCFD @
1000 BTU
Nuclear
1%
2,400
0%
2,000
Hydro
4%
19%
2.3 %
15.6 %
Coal & Lignite
5,000
1,600
34%
45.6 %
1,200
2014
5,500
Natural Gas
4,500
2012
2013
4,000
2011
3,500
800
3,000
36.5 %
400
0
2007
42%
Petroleum Product 2,500
Jan – Jun 2013
4,854 MMSCFD
Jan – Jun 2014
4,845 MMSCFD
2,000
2008
2009
2010
2011
2012
2013
2014
2015
J
2020
F
M
A
M
J
J
A
S
O
N
D
Source : PTT & PTTEP
Source : EPPO
Gas Consumption
By Sector
MMMSCFD
6,000
Gas Market
MMSCFD @
1000 BTU
6,000
Gas Demand
5,000
15% Industry
7%
19%
Household &
Petrochemical
20%
3,000
LNG
4,000
Contracted
Import
7% NGV
14%
4,000
5,000
3,000
60%
2,000
2,000
Power
59%
Contracted
Domestic
1,000
1,000
0
0
2009
2010
2011
2012
2013
2014
2015
2009
2016
Source : PTT & EPPO
Supplement
24
2010
Source : PTT & EPPO
2 / 11
2011
2012
2013
2014
2015
2016
Strong Relationship with Majority Shareholder
Leveraged and supported by PTT and the Thai Government
Ownership Structure1
•
•
Government of
Thailand
66.0%2
PTTEP is the flagship oil & gas exploration and production
arm of PTT, and is critical to the Thai Economy
•
PTTEP supplies more than 80% of sales volume to PTT, a
financially strong corporate and Thailand’s main provider
of natural gas
•
Thailand’s national energy company
65.3%
•
PTTEP supplies approximately a fourth of Thailand's total
petroleum production
PTTEP is engaged in long-term gas off-take agreements
(generally 25 to 30 years) with PTT, a major source of PTTEP’s
stable revenue stream
Synergies between PTTEP and PTT in the natural gas
value chain
•
PTTEP provides PTT with access to gas production
•
PTT provides leverage and support for PTTEP’s relationships with
other government bodies and agencies
•
The relationship with PTT provides PTTEP with a competitive
position to offer integrated solutions to counterparties
Notes:
1 Ownership as of 8 August 2014
2 51.1% is directly held by the Government of Thailand (Ministry of Finance), with the remaining 14.9% held by the state-controlled Vayupak Fund I
Supplement
25
3 / 11
Thailand
Strong home base with legacy assets maintaining production plateau
Bongkot (44.4% interest)
•
Bongkot’s production capacity of close to 1 Bcf/d represents approximately 20% of
Thailand’s natural gas supply
•
Bongkot South
S1
Average natural gas sales volume from the Bongkot fields was 860 MMSCFD during
1H 2014
•
Average condensate sales volume was 29 KBPD in 1H 2014
S1 (100% interest)
Arthit
Vietnam
Contract16-1
4
•
S1 is the largest onshore crude oil production field in Thailand
•
Average crude oil sales volume was 28 KBPD during 1H 2014
Arthit (80% interest)
S1
•
Average sales volume during 1H 2014 was 217 MMSCFD of natural gas and 8.9
KBPD of condensates
Acquisition of Hess Assets in Thailand
Contract 4
Bongkot
•
PTTEP successfully acquired Hess Corporation’s working interests in the Contract 4
project and Sinphuhorm project, and now holds 60% working interest in the Contract
Arthit
4 project and 55% working interest in the Sinphuhorm project . PTTEP has also
become the operator of the Sinphuhorm project
•
Production / Ramp-up Projects
The Contract 4 project had an average sales rate of 387 MMSCD for natural gas and
29 KBPD for condensates during 1H 2014
Supplement
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4.1 / 11
Southeast Asia: Myanmar
A significant contributor to growth, with high potential blocks
Zawtika (80% interest)
• Began delivering gas to Myanmar in March 2014, and to Thailand in August 2014
• Currently delivering at full DCQ of 300 MMSCFD
M3 (80% interest) & M11 (45% interest)
• Appraisal drilling campaign in M3 completed in August 2013, with gas and
condensate discoveries
• Plan to drill 3 more appraisal wells during 2H 2014 to firm up resource potential
Progress of
Zawtika
Zawtika Processing Platform and
development Living Quarters
• The M11 project is in the process of assessing the potential of remaining areas in
order to plan for further exploration activities
PSC-G and EP-2 (90% interest)
• Completed 2D seismic acquisition in December 2013
• Currently drilling 1 exploration well with 2 more planned during 2H 2014
MOGE-3
PSC-G
and EP-2
MD-7 and MD-8 (100% interest)
• Completed 2D seismic acquisition for planning of further exploration activities
MOGE-3 (85% interest)
M3
Zawtika
M11
Yetagun
• Signed a PSC on August 8th with MOGE for exploration and production rights.
Yadana (25.5% interest)
• Average sales volume of 726 MMSCFD of natural gas in 1H 2014
MD-7 & MD-8
Yadana
Production / Ramp-up Projects
Yetagun (19.3% interest)
• Sales volume averaged 347 MMSCFD for natural gas and 7.7 KBPD for
condensates in 1H 2014
Exploration / Appraisal Projects
Supplement
27
4.2 / 11
Southeast Asia: Vietnam and Indonesia
Reinforcing regional exposure through strategic partnerships
Vietnam 16-1 (28.5% interest)
•
Average crude oil sales volume of 35.7 KBPD in 1H 2014
•
Successful drilling of an appraisal well in area H5 in August 2013 with further
development plan to maintain production rate at 40,000 – 45,000 BPD
Natuna Sea A (11.5%* interest)
•
Vietnam 16-1
Acquired interest from Hess Corporation through joint partnership with Pertamina in
December 2013
•
Average sales volume of natural gas was 217 MMSCFD, and average sales volume of
crude oil was 857 BPD during 1H 2014
Vietnam 16-1
Natuna Sea A
Natuna Sea A
Production / Ramp-up Projects
* Net participating interest from 50/50 joint partnership with Pertamina to acquire 23% interest in the project
Source : Premier Oil
Supplement
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4.3 / 11
East Africa: Mozambique
A region positioned for the Asia LNG Market
Area 1 (8.5% interest)
Advancing towards 50 MMTPA
•
Abundant resource based estimated at 50 to 70+ TCF of recoverable natural gas
•
Reserve certification sufficient for two 5 MMTPA LNG trains
•
Secured non-binding Heads of Agreement for LNG off-take for more than one 5MMTPA
LNG train
•
Evaluation of competitive feed studies under way
Location and Cost Advantages
•
High quality reservoirs
•
Proximity to shore; 5 to 25 miles
•
Scalable onshore development
Source: Anadarko, Woodmackenzie
Supplement
29
4.4 / 11
Australia
Ensuring smooth Montara production ramp-up and Cash/Maple development
Montara (100% interest)
• First production began in June 2013 through the Montara Venture
FSPO
• Currently producing from 8/9 wells at an average rate
approximately 25 KBPD
Montara Venture FPSO
Cash / Maple
Montara
• In relation to the Montara Incident, 98% of the amount recoverable
under PTTEPAA's insurance policy, US$242m has been received
as of 1H 2014
Cash / Maple (100% interest)
• Spudded Maple-East exploration well during Q2 2014, with results
expected during 2H 2014
• Currently in the process of considering commercial options for the
development of the field
Production / Ramp-up Projects
Exploration / Appraisal Projects
Supplement
30
4.5 / 11
Canada Mariana Oil Sands
Flexibility to pursue strategic direction in the long-term growth project
The Asset Swap
• On 28 May 2014, the conditions precedent to closing,
prescribed in the Partnership Unit Redemption
Agreement (PURA), have been duly satisfied, and
the PURA has been completed.
Hangingstone
• PTTEP Canada Limited now owns and operates
100% of the Thornbury, Hangingstone and South
Leismer areas (THSL), and has received from Statoil
Canada a total of 419 million US dollars.
Thornbury
• PTTEP will begin the Winter Evaluation program of
the Thornbury field in December 2014.
South Leismer
Oil Sands (Image courtesy of Suncor Energy)
Supplement
31
4.6 / 11
Brazil Deepwater
Early entry into high petroleum prospects as a platform for new exploration play
• Farm-in 25% from BG Group
Barreirinhas AP1
• Operated by BG Group (75% interest)
• Investment into four offshore blocks
approved by the ANP in Q3 2014
Barreirinhas
Basin
• Currently preparing for seismic
acquisition and conducting G&G studies
BRAZIL
Espirito
Santo
Basin
Concession BM-ES-23
• Acquired 20% interest from Shell in
Q3 2014, subject to approval from the
government of Brazil
• Operated by Petrobras (65%) and also
partnered with INPEX (15%)
Source : The National Agency of Petroleum, Natural Gas and Biofuels, Brazil (the ANP)
Supplement
32
4.7 / 11
PTTEP Projects Information (1 / 4)
PTTEP’s
Share
Project
Partners
1H 2014 Average Sales Volume *
Gas
Oil and Other
2014 Key Activities
Production Phase
Thailand and JDA
1
Arthit
80%
Chevron
MOECO
16%
4%
217 MMSCFD
Condensate: 8.9 k BPD
-


Ensure gas deliverability level above 220 MMSCFD
Drill Exploration/Appraisal wells
2
B6/27
60%
JX NOEX
40%
N/A
N/A

Completed 1 exploration well (Nok Kaew-1)
3
B8/32 & 9A
25%
111 MMSCFD
Crude: 30 k BPD

Drill Development wells
4
Bongkot
Chevron
MOECO
KrisEnergy
PSTL
TOTAL
British Gas
860 MMSCFD
Condensate: 29 k BPD
-

Drill Exploration / Appraisal / Development wells
5
Contract 3
(Formerly
Unocal III)
Contract 4
(Formerly
Pailin)
635 MMSCFD
Condensate: 18.6 k BPD
Crude: 23k BPD

Drill 1 Exploration well / Development wells

Drill Exploration / Appraisal / Development wells

Drill Exploration / Development wells

Drill Exploration/ Appraisal wells
6
*
44.4445%
51.66%
16.71%
4.63%
2%
33.3333%
22.2222%
5%
Chevron
MOECO
71.25%
23.75%
60%
Chevron
MOECO
35%
5%
387 MMSCFD
Condensate: 18 k BPD
-
20%
ExxonMobil
80%
12 MMSCFD
-
51%
21.25%
6.375%
71.25%
23.75%
2.4 MMSCFD
Crude: 5k BPD
11 MMSCFD
Crude: 1.5 k BPD
7
E5
8
G4/43
21.375%
9
G4/48
5%
10
100%
-
Crude: 151 BPD
11
L53/43 &
L54/43
PTTEP1
100%
-
Crude: 284 BPD
12
S1
100%
27 MMSCFD
Crude: 28 k BPD


Maintain production level above 30,000 BPD
Continue Exploration and development activities
13
Sinphuhorm
55%
Apico
ExxonMobil
35%
10%
120 MMSCFD
Condensate: 497 BPD
-

Drill 1 Development well
14
MTJDA
50%
PetronasCarigali
50%
325 MMSCFD
Condensate: 6.8 k BPD
-

Drill 2 Appraisal wells
Sales volume stated at 100% basis.
Chevron
MOECO
PSTL
Chevron
MOECO
33
Supplement 5.1 / 11
PTTEP Projects Information (2 / 4)
Project
PTTEP’s
Share
Partners
1H 2014 Average Sales Volume *
Gas
Oil and Other
2014 Key Activities
Production Phase
Overseas
15
Oman 44
16
Vietnam 9-2
17
Yadana
18
Yetagun
19
Vietnam 16-1
20
PTTEP Australasia
(PTTEP AA)
21
Natuna Sea A
22
Zawtika
(M9 & a part of M11)
*
27 MMSCFD
Condensate:
2.1 k BPD
-


Drill Exploration / Appraisal wells
Maintain production rate
50%
25%
15 MMSCFD
Crude: 5.5 k BPD

Drill 1 Development well
31.24%
28.26%
15%
726 MMSCFD
-

3D Seismic acquisition of 3,335 sq.km.
PetronasCarigali
MOGE
Nippon Oil
PC Myanmar
(Hong Kong)
30.00140%
347 MMSCFD
Condensate:
7.7 k BPD
-

Drill 1 exploration well and 2 development wells
PetroVietnam
SOCO
OPECO
41%
28.5%
2%
57 MMSCFD
Crude: 35.7
K BPD


Drill 1 development well
H5 development Sanction expected in Q2 2014
-
Crude: 16 k BPD


Completed 1 exploration well (Dillion South-1)
Drilling 1 exploration well (Maple East-1)
28.67%
33.33%
15%
11.5%
217 MMSCFD
Crude: 857 BPD
20%
30 MMSCFD
-

Successfully delivering gas to Myanmar since late
March 2014
Successfully delivering gas to Thailand since early
August 2014
Daily contractual quantity at 300 MMSCFD (80% to
Thailand and 20% to Myanmar)
100%
25%
25.5%
19.3178%
28.5%
PetroVietnam
SOCO
TOTAL
Chevron
MOGE
20.4541%
19.3178%
10.90878%
20%-100%
(varied by
permits)
Sales volume stated at 100% basis.
11.5%
80%
Premier Oil
KUFPEC
Petronas
Pertamina
Myanma Oil
and Gas
Enterprise
(MOGE)


34
Supplement 5.2 / 11
PTTEP Projects Information (3 / 4)
Project
PTTEP’s
Share
Partners
2014 Key Activities
Development Phase :
Thailand and JDA
23
L22/43
100%


Drill 3 Exploration wells
Fabrication and installation of Wellhead production facility



Drill 4 Development wells
Continue Engineering, Procurement & Construction (EPC) work
First oil expected in the end of 2014
Overseas
24
Algeria 433a & 416b
(Bir Seba)
Project
35%
PetroVietnam
Sonatrach
PTTEP’s
Share
40%
25%
Partners
2014 Key Activities
Exploration Phase
Thailand and JDA
25
A4, 5 /48
100%
26
G9/43
100%
27
L28/48
70%
Resourceful Petroleum
(Thailand)

G&G Studies
30%

To P&A Ratana-1 and Ratana-2 well
20%

Drill 3 appraisal wells
26.5%,20%
15%,10%,
10%,10%
24.5%
51%


Drill 6 Exploration and 5 Appraisal wells
Complete FEED / FID for Mozambique LNG Project



Drill 3 Appraisal wells
Studies and FDR Preparation
3D seismic acquisition of 1,000 sq.km
28.33%
28.33%
15%


Drill 2 Exploration wells
G&G Studies
Overseas
28
Myanmar M3
80%
MOECO
29
Mozambique Rovuma
Offshore Area 1
8.5%
30
Algeria Hassi Bir
Rekaiz
Anadarko, Mitsui,
ENH, Bharat Petroleum,
BREML, OVL
CNOOC
Sonatrach
31
Indonesia Semai II
24.5%
28.33%
Murphy
INPEX
PT Pertamina Hulu Energi
Semai II
35
Supplement 5.3 / 11
PTTEP Projects Information (4 / 4)
Project
PTTEP’s
Share
Partners
2014 Key Activities
Exploration Phase (con’t)
Overseas (con’t)

Negotiation with Total (Operatorship transfer & Carry cost)


Conduct new 3D seismic over the new oil plays
Continue divestment effort
40%
15%
42.38%
25.62%
23.5%
43.4%
30%
19.6%
10%

G&G Studies

Negotiate a GSA with the Vietnamese government

Negotiate a GSA with the Vietnamese government

Drill 2 Exploration wells
Anadarko, Maurel&Prom,
ENH, Wentworth Resources
35.7%,27.7%
15%,11.6%


Drill 2 Exploration wells
Acquire 2D seismic acquisition over prospect area
BG, Pan Cont.
50%,18.75%



Conduct G&G studies
Completed 1 Exploration well (Sunbird-1)
3D seismic acquisition of 2,000 sq.km.
50%,40%


Drill 1 Exploration well in Block L11B
Conduct G&G Studies
100%

2D seismic acquisition and processing
Mariana Oil Sands
100%


Completion of asset swap on 28 May 2014
Pre-FEED for the first production phase of the Thornbury field
43
Barreirinhas AP1
25%
BG Brasil
75%

3D seismic acquisition
44
MOGE 3
85%
Palang Sophon Offshore
WinPreciousResources
10%
5%

Environmental Impact Assessment/ Social Impact Assessment
45
Concession
BM-ES-23
20%
Petrobras
INPEX
65%
15%

Subject to the approval of Brazil’s National Agency of Petroleum, Natural
Gas and Biofuels (the ANP)
32
Indonesia South
Mandar
34%
33
Indonesia Malunda
34
Myanmar M11
45%
35
Vietnam B & 48/95
8.5%
36
Vietnam 52/97
37
Myanmar
PSC-G and EP-2
90%
38
Mozambique
Rovuma Onshore
10%
39
Kenya L10A
40
Kenya L5, L7, L11,
L11B, L12
10%
41
Myanmar MD 7 and
MD 8
42
Talisman
TOTAL
33%
33%
100%
7%
31.25%
TOTAL
JX NOEX
Chevron
MOECO
PVEP
Chevron
PVEP
MOECO
WinPreciousResources
Anadarko, Total
36
Supplement 5.4 / 11
PTTEP Management Team
Extensive experience and widely recognized in the petroleum industry
Tevin Vongvanich—Director, President & Chief Executive Officer
• Experience: CFO, PTT PCL; Director, PTT Aromatics and Refining PCL, PTT Chemical PCL, Thaioil PCL, PTT
International Co., Ltd., Bangkok Aviation Fuel Service PCL, Bangchak Petroleum PCL; Chairman, PTT ICT Solutions
Co., Ltd., Thailand Management Association (current)
• Education: M.A. (Petroleum Engineering), University of Houston, USA; M.S. (Chemical Engineering), Rice University,
USA; B.Eng. (Chemical Engineering), Chulalongkorn University, Thailand
Nawee Anantraksakul—Executive Vice President
Asdakorn Limpiti—Executive Vice President
• Geosciences and Exploration Group
• Experience: Senior Vice President, Bongkot Asset, Quality Assurance
Champion
• Education: M.S. (Geology), Chulalongkorn University, Thailand
• Strategy and Business Development Group
• Experience: Vice President, Strategy and Capability Development
Division; Acting Executive Vice President, Technologies and
Sustainability Development Group; Vice President, Bongkot Asset
• Education: M.SE. (Chemical Engineering), University of Michigan,
USA
Somporn Vongvuthipornchai—Executive Vice President
Kanit Sangwongwanich—Executive Vice President
• Operations Support Group
• Experience: Senior Vice President, Well Technology Division
• Education: Bachelors (Petroleum Science), University of Wyoming, USA
• International Asset Group
• Experience: Vice President, International Assets Division; Vice
President, Production Development Division; Vice President,
Geosciences Division
• Education: Ph.D. (Petroleum Engineering), University of Tulsa, USA
Penchun Jarikasem—Executive Vice President
Phongsthorn Thavisin—Executive Vice President
• Finance and Accounting Group
• Experience: Executive Vice President, Corporate Finance of PTT PCL;
Vice President, Corporate Strategic Finance; Vice President, Corporate
Funding and Financial Management Department
• Education: M.Sc. (Business Administration), Thammasat University,
Thailand
• Engineering and Development Group
• Experience: Senior Vice President of the Engineering and Construction Division,
Vice President of the Engineering and Construction Division and Vice President
of the Production Development Division
• Education: B.Eng. (Petroleum Engineering), Pennsylvania State University,
USA
Pairoj Rangponsumrit—Executive Vice President
Thiti Mekavichai—Executive Vice President
• Human Resources and Business Services Group
• Experience: Senior Vice President, Human Resources Division and Executive
Vice President at Central Retail Corporation Limited before joining PTTEP
• Education: Bachelors (Geography), Srinakarinvirot (Prasarnmitr) University,
Thailand
• Domestic Assets Group
• Experience: Senior Vice President, S1 Asset
• Education: M.S. (Mathematics), Mahidol University, Thailand
Supplement
37
6 / 11
Dedication to Sustainable Development
Pursuing long-term growth hand-in-hand with social and environmental well-being
2014 DJSI Listed Company
Certified Member
Dow Jones Sustainability World Index
Oil & Gas Sector
Thailand's Private Sector Collective Action
Coalition Against Corruption (CAC)
Proven business integrity
2012/2013 Board of the Year
Thailand Institute of Directors
NACC Integrity Awards 2012
The National Anti-Corruption Commission
Best Public Company in Resources Sector
Exemplar social contributor
Best Strategic Corporate CSR
Alpha Southeast Asia Magazine
Global CSR Award :
Best Community Program
Pinnacle Group International Singapore
Money & Banking Magazine
38 7 / 11
Supplement
Green driver to environment
Best Environmental Responsibility
Corporate Governance Asia
Joint research project with HITZ for CO2
to methane conversion
Participation in Thailand Voluntary
Emission Reduction Program (T-VER)
Corporate Social Responsibility
Committed to Sustainable Development through Environmental Conservation
and Community Development everywhere we operate
Canada
LEGEND
Myanmar
Oman
Cultural Heritage Preservation
5 Sites; e.g. Khao Yai, Kampaeng Phet
Thailand
Marine Habitat Restoration
Artificial Reefs, Fisheries
Environmental & Reforestation Projects
In Thailand : 200,000 rais between 2013-2020
Australia
Promotion of Education
Scholarships, Mobile Libraries, Tutor Camps
Promotion of Health, Hygiene, & Social Needs
Health Stations, Hospital Renovations, Utilities Improvement
39
Supplement
8 / 11
Human Rights
Emphasis on the well-being of employees, partners and customers
PTTEP…
• Is responsible for labor rights in any operational area,
strictly prohibiting child labor and forced labor
• Makes fair employment and fosters safe work
environment, regardless of local laws on human rights,
in which PTTEP operates
• Works only with ethical partners, who have no record of
any infringement of human rights
• Promotes communication between executives and
employees through employee empowerment
• Is ready to provide proper and necessary benefits to
enrich employees' quality of living
40
Supplement
9 / 11
Corporate Structure
Board of Directors and committees to ensure transparency and integrity
Board of Directors
Nominating Committee
Corporate Governance Committee
Remuneration Committee
Audit Committee
Risk Management Committee
President and CEO
Internal Audit
Department
Strategy and
Business
Development
Group
Geosciences
and
Exploration
Group
Engineering
and
Development
Group
Corporate
Secretary Office
Domestic
Asset Group
Legal Division
International
Asset
Group
41
Operations
Support Group
Supplement 10 / 11
Technology
and
Sustainability
Development
Group
Human
Resources and
Business
Services Group
Finance and
Accounting
Group
Ratio Formulas
Ratio
Lifting Cost ($/BOE)
Formula
(Operating Exp. – Transportation Cost – Stock Variation – Other expense not related to lifting) / Production
Volume
Cash Cost ($/BOE)
(Operating Exp. + SG&A + Royalty & SRB) / Sales Volume
Unit Cost ($/BOE)
(Operating Exp. + Exploration Expense + SG&A + Royalty + DD&A) / Sales Volume
Reserves Replacement Ratio
5-Yr Additional Proved Reserves / 5-Yr Production Volume
Reserves Life Index (Year)
Proved Reserves / Production Volume
Success Ratio
Number of wells with petroleum discovery / Total number of exploration and appraisal wells
EBITDA
EBITDA Margin
Total Interest Bearing Debt
Total Debt to Equity Ratio
Total Debt to EBITDA Ratio
Dividend Payout Ratio
(Sales + Revenue from pipeline transportation) - (Operating expenses + Exploration expenses +
Administrative expenses + Petroleum royalties and remuneration + Management's remuneration)
EBITDA / Sales Revenue
Short-term loans from financial institution + Current portion of long-term debts + Bonds + Long-term loans
from financial institution
Total interest bearing debt/ Shareholders' equity
Total interest bearing debt / Trailing-12-month EBITDA
Dividend Payment / Net Profit
42
Supplement
11 / 11