PTTEP Wins Gas Drilling Licence in Algeria
PTTEP's Bongkot gas field in the Gulf of Thailand. The company continues to grow its business domestically and abroad, including gas exploration and production in Algeria. Please credit and share this article with others using this link: https://www.bangkokpost.com/business/general/3052931/pttep-wins-gas-drilling-licence-in-algeria. View our policies at http://goo.gl/9HgTd and http://goo.gl/ou6Ip. © Bangkok Post PCL. All rights reserved.
PTT Exploration and Production Plc (PTTEP) plans to grow its gas business in Africa after its subsidiary was granted a licence for onshore petroleum exploration and production by the Algerian government.
The company, together with its co-investor Eni, an Italian oil and gas giant, won a bid to operate at the Reggane II block located in southwestern Algeria.
The investment aligns with its growth strategy in focused areas and will enhance its upstream portfolio in Algeria, where the company is expanding its presence in the gas sector, said Montri Rawanchaikul, chief executive of PTTEP.
The company, through its wholly-owned subsidiary PTTEP Algeria Co, is making a 34% investment in the Reggane II project, with the remaining 66% investment funded by Eni Algeria Exploration BV, a subsidiary of Eni.
The Reggane II project was awarded to the two subsidiaries during the 2024 Algeria Bid Round, which was held on June 17.
Eni will serve as the drilling operator at the Reggane II block.
According to PTTEP, the Reggane II block spans 40,828 square kilometres and includes both discovered gas fields and areas with further exploration potential.
The business model in the Algerian exploration and production industry is production-sharing contracts, which should be signed subsequently, following the announcement of the bidding results, said Mr Montri.
PTT earlier announced a 10-year business plan to achieve growth targets between 2025 and 2034.
During this period, the compound annual growth rate is projected at 2-3% as the company has a production target of 716 kilo-barrels of oil equivalent per day (KBOED), representing an annual growth rate of 11% from 422 KBOED in 2020, according to Sermsak Satchawannakul, senior vice-president for accounting at PTTEP.
In addition to the Reggane II project in Algeria, PTTEP plans to carry out new petroleum exploration projects in Malaysia and Mozambique.
Domestically, the company will maintain its production in Thailand, especially at the Erawan, Bongkot and Arthit gas blocks in the Gulf of Thailand, Mr Sermsak said.