PTTEP to revise sale target after Montara blaze

BANGKOK, 16 November 2009 (NNT) – PTTEP will declare the Montara blaze assessment report to Japanese investors on 30 November. Next year’s sale target is adjusted down but the total revenue is expected to grow 10%.

Mr Anon Sirisaengtaksin, PTTEP Chief Executive Officer, said the company has planned to present the impact assessment from the recent blaze in Montara oil rig to the investors in Japan at the end of this month. The damage investigation is still in process so only part of information will be provided along with the annual work progress and next year’s production plan.

Mr Anon said his visit would be a good opportunity to elucidate foreign investors that the incident was under control and did not affect the stock price. The damage assessment should be done within 3 months. He said the investigation was delayed as Australian authorities demanded 100% safety assurance before an evaluation team could be sent in. He believed the damage would be covered under the 270 million USD insurance indemnity.

According to Mr Anon, the company is likely to postpone the production plan of the damaged wellhead to the end of next year but the annual revenue would still grow by 10% regardless of Montara’s stoppage. Two other rigs – MT JDA and Arthit – would help compensate the capacity loss, facilitating the growth.

However, PTTEP will reconsider the short and long term investment budget and will announce the revised amount by year’s end. This year’s sale volume is predicted to be 3-5 % lower than the target of 264 thousand barrels per day.

The 3-day fire incident occurred earlier this month on PTTEP’s Montara rig in Timor Sea following month-long oil leaks from the site. The cause of the blaze remains unrevealed.