Home' Trinidad and Tobago Guardian : March 23rd 2017 Contents MARCH 23 • 2017 guardian.co.tt BUSINESS GUARDIAN
ENERGY | BG9
Thai oil giants look to invest US$11B in M&A
The Asian energy companies sitting on the
largest hoard of cash outside China are ready
Thailand's PTT Exploration & Production
and its parent company have nearly $11 billion
combined in cash and marketable securities,
such as bonds and other short-term investments. The explorer
is ready to spend from its portion on projects and exploration
acreage to rescue declining oil and gas reserves, according to
CEO Somporn Vongvuthipornchai.
PTT E&P is eyeing early-life producing assets or projects that
are already sanctioned and ready for development, Somporn
said in an interview in Bangkok. It's also looking to work with
its parent, PTT Pcl, to invest in liquefied natural gas plants,
which would help feed the country's growing demand.
"We'll have to rely on mergers and acquisitions to maintain
our growth," said Somporn. "We're looking at opportunities
in the few hundred million to US$1 billion range."
There was no such hunger when Somporn took the reins of
the upstream company in October 2015. Oil prices had already
fallen from the US$100 a barrel range into the US$60s, and
he watched as over his first six months they cratered below
US$30 to hit the lowest in more than a decade.
He kept the company focused on weathering the downturn
by cutting costs and investments. Meanwhile, proved reserves
have fallen from the equivalent of 1.1 billion barrels of oil in
2009 to 695 million last year. That will last just five years at
its current production rate.
Most of the company's wells are in Thailand and Myanmar,
where Somporn is looking first for new supply. Divestitures
by oil majors seeking to maintain dividends in a lower revenue
environment provide opportunities to find assets, he said.
LNG is another avenue for growth. Parent-company PTT
is looking to expand gas imports to meet growing domestic
demand fuelled by economic expansion, while domestic pro-
duction is declining and pipeline imports from Myanmar may
be redirected to China.
"There is an opportunity for us to participate more on the
LNG value chain," Wuttikorn Stithit, PTT's executive vice
president for natural gas supply and trading, said in a separate
interview. "It's kind of a natural hedge, because when the price
of LNG is high, from the projects we would have some value."
Oil and Gas journal
Mad Dog 2 project
OneSubsea, a Schlumberger company, today an-
nounced the award by BP of an engineering, procure-
ment and construction (EPC) contract to supply the
subsea production system for the Mad Dog 2 devel-
opment in the Gulf of Mexico (GOM).
The scope of this supplier-led solution includes
subsea manifolds, trees, control system, single and
multi-phase metres, water analysis sensors, inter-
vention tooling and test equipment for producer and
water injection wells associated with the project. In
addition, Subsea 7, which collaborates with One-
Subsea through the Subsea Integration Alliance, was
awarded an engineering, procurement, construction
and installation (EPCI) contract for subsea controls,
flexible risers, pipeline systems, umbilicals and as-
sociated subsea architecture.
"Our collaborative working relationship with Sub-
sea 7 empowers our organisations to deliver to BP an
integrated EPCI capital-efficient solution, which is
substantially lower than the original estimated pro-
ject cost," said Mike Garding, president, OneSubsea,
"Our equipment reliability is a key factor in miti-
gating project risk and this project will benefit from
the supplier-led approach of using standardised
equipment designs and specifications."
Oil and Gas news
Global energy CO2
emissions could be
cut by 70% by 2050
Global energy-related carbon dioxide (CO2) emis-
sions could be reduced by 70 per cent by 2050 and
completely phased out by 2060, research by the
International Renewable Energy Agency (IRENA)
showed on Monday.
To help achieve this, the share of renewable ener-
gy in primary energy supply would need to increase
to 65 per cent in 2050 from 15 per cent in 2015, the
An additional US$29 trillion of energy investment
would be needed to 2050, equivalent to 0.4 per cent
of global gross domestic product (GDP).
Such investment should provide stimulus that, with
other policies supporting growth, would boost global
GDP by 0.8 per cent in 2050.
Globally, 32 gigatonnes of energy-related CO2 were
emitted in 2015. Emissions need to fall to 9.5 giga-
tonnes by 2050 to limit global warming to no more
than 21/4C above pre-industrial temperatures, IRENA
said. Oil and Gas news
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