PTTEP plans Middle East expansion for greater petroleum output and renewable energy

PTT Exploration and Production Public Company Limited (PTTEP) announced its strategic plans to centre business operations in the Middle East to expand petroleum output and explore opportunities for innovative energy enterprises, revealed Montri Rawanchaikul, PTTEP’s Chief Executive and President.

On the domestic front, the company aims to escalate gas production at the Erawan gas field to 800 million standard cubic feet daily by April of next year. Such a boost in production is expected to decrease Thailand’s reliance on imported LNG (Liquefied Natural Gas), particularly as elevated LNG prices last year were cited as the cause of the country’s escalated energy bills.

In terms of its international operations, PTTEP views the Middle East as a critical region for augmenting its petroleum production and launching additional businesses such as solar energy, wind energy, and hydrogen fuel. However, clear plans for the company’s future renewable energy ventures in the Middle East are yet to be defined, states Montri.

As reported by PTTEP, both Oman and the United Arab Emirates (UAE) are vital for the company’s petroleum exploration and manufacturing ventures. In Oman, PTTEP’s work centres on the production of crude oil, gas, and condensate drawn from three areas: Block 6, the company’s prime crude oil asset; Block 53; and Block 61.

The noteworthy Block 6, responsible for covering approximately a third of the country, is operated by Petroleum Development of Oman Co. The company aims to enhance its crude oil production capacity in this block to 800 kilo barrels daily (KBPD) by 2027, an increase from its current 660 KBPD. Additionally, PTTEP has invested 20% in Block 12, which is in the exploration phase currently.

As for the UAE, PTTEP is investigating oil and gas resources across three zones: the offshore areas 1-3 of Abu Dhabi, and the onshore areas A and C of Sharjah. The company has apportioned its investments in these projects as 30%, 25%, and 25% respectively, reported Bangkok Post.

In more recent developments, PTTEP’s parent firm, PTT Public Company Limited, intends to invest US$7 billion to co-develop a project focused on green hydrogen production. The project will be carried out in cooperation with their partners – the Electricity Generating Authority of Thailand and ACWA Power, a firm based in Saudi Arabia, which is renowned for its work in the renewable energy sector.

ACWA Power also has plans in the pipeline to establish an electric vehicle-related business in Southeast Asia. In line with the project’s ambitions, the proposal for a green hydrogen factory in Thailand is already underway.

Expected to have an annual production capacity of 225,000 tonnes, the factory will produce green hydrogen that can fuel power generation and manufacturing processes. This green hydrogen is yielded from the process of using power derived from renewable energy sources for the separation of water molecules into oxygen and hydrogen.