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Project Insights

Thailand eyes more upstream assets and LNG

PTTEP has plenty of liquidity but needs to spend the money on more upstream assets to offset Thailand’s declining reserves, analysts say PTTEP has plenty of liquidity but needs to spend the money on more upstream assets to offset Thailand’s declining reserves, analysts say.
By Damon Evans 12 October 2016 Asia Pacific / Companies & Finance 0 22337
PTTEP has put in an offer for BG Group’s stake in the Bongkot gas field. (BG Group)

Cash-rich PTT Exploration & Production (PTTEP) urgently needs to acquire more upstream assets to boost its falling reserves, and Thailand will have to get by on imported LNG in the meantime, experts have said.

Moody’s expects that the upstream Thai player will have to acquire producing oil and gas assets over the next 12-18 months as the company has only five years of proven reserves left. This is equal to 738 million barrels of oil equivalent and represents a 33% drop since 2009, Rachel Chua, an...