January 7, 2014 / 5:45 AM / 4 years ago

UPDATE 1-Thai PTTEP lifts 2014 investment plan 60 pct on Mozambique project

BANGKOK, Jan 7 (Reuters) - Thailand’s PTT Exploration and Production Pcl (PTTEP) said it plans to invest $5.5 billion this year, up nearly 60 percent from a previous estimate, with much of the hike due to an investment in a LNG field in Mozambique.

It also said it was reviewing its investment strategy in its loss-making KKD oil sands project in Canada due to high costs and expects to make a decision within this year.

“There are several possibilities. We may push ahead or pull back. But I can’t tell more details because we need to do some assessment first,” Chief Executive Tevin Vongvanich told a news conference.

Thailand is keen to secure long-term energy supplies and last month, PTTEP’s parent company PTT Pcl signed a preliminary deal with Anadarko Petroleum Corp to buy 2.6 million tonnes per year of liquefied natural gas from a field in Mozambique.

PTTEP has an 8.5 percent stake in the Rovuma Offshore Area 1 project, which is expected to start producing LNG in 2018-2019.

For the five years through to 2018, PTTEP, Thailand’s top oil and gas explorer, plans to invest $27.3 billion, higher than the $25 billion it planned for 2013-2017.

PTTEP also said petroleum sales are expected to rise to 337,000 barrels of oil equivalent per day (BOEPD) in 2014, up from an estimated 292,000 BOEPD in 2013.

The increase will mainly come from the Zawtika project in Myanmar, which is expected to start up by the first quarter of this year, it said.

Petroleum sales are expected to rise to 354,000 BOEPD in 2015 before falling to 344,000 in 2016, 330,000 in 2017 and 321,000 in 2018, it said in a statement.

PTTEP also expects to conclude a deal to buy stakes in Hess Corp’s <HES.N. assets in Thailand in the first quarter of 2014.

PTTEP recently joined hands with Indonesia’s Pertamina to buy Hess’s stake in two Indonesian offshore fields for $1.3 billion.

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