PTT TT Explo ploratio ration n an and Pro roduct duction ion - PowerPoint PPT Presentation

PTT TT Explo ploratio ration n an and Pro roduct duction ion Public lic Comp mpany any Limite mited Q2 2 20 2016 16 Analyst lyst Meeting ting Bangko gkok 8 August 8 A gust 20 2016 16

Sa Safety ety Pe Performa formance nce Indu dustry stry Hi Highl hligh ights ts Fi Financial ncial Resul ults ts Out utloo look Safety ety Industry try Financi ncial al Outlook look 2

Our prio iority ity on Saf afety ty an and En Envir iron onmen ment Safe afety ty Envi nvironment ronment Maintain ntain high safet ety y sta tandar ndard Target et 20% GHG reducti ction on by 2020 % of reduction in GHG emission per BOE produced, comparing to # of incidents per million man hours (Lost time injury incident frequency, LTIF) 2012 base year figure 20% 20% 17% 17% Industry Benchmark PTTEP Actual Plan 0.5 0.07 0.0 Base se year ar Target get 2016 (5M) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2012 2020 2020 Safet ety y of PTTEP EP emplo loyee yees s and contract actors s in ever ery y aspec ect of PTTEP P aims ms to become me a Low Carbon n Footprint nt orga ganiz nizatio ation, n, and our oper eratio ations ns is key to achieve hieve the goal al of of has set a goal l to reduce uce its s gree eenho nhouse use gas (GHG) ) emiss ssions ns by not “Target Zero ” less ss than n 20% in the year ar 2020 ver ersus sus its s 2012 base e year ar figu gure. e. * Increase in GHG emission per barrel produced in 2014 was due to slight decrease in production from domestic assets. Safety ety Industry try Financi ncial al Outlook look 3

Safety Sa ety Pe Performa formance nce Indu dustry stry Hi Highl hligh ights ts Fi Financial ncial Resul ults ts Out utloo look Safety ety Industry try Financi ncial al Outlook look 4

Oil il Pric ices es Oil prices continue to be volatile, expected range of 40-50 $/BBL in 2H16 Brent ent Dubai ai Min-Max Max Bren ent Analyst lyst Conse sens nsus* us* First st Half f of 20 2016 16 Highlig hlights hts Q1 1 20 2016 16 Highli hlights ghts US$ / Barrel Suppl ply y disr srupt ption ion in Canad ada a and Nigeri eria a and 120 decli linin ning g outpu put t from om US 110 Conti tinu nuou ous s suppl pply y ramp-up p from om Iran n after er 100 inter ernat natio ional nal sancti ctions ns lifted ted 2014 1H actual 2014 2015 1H actual 90 2016 c onsensus Brent 58.97 US$/BBL Brent 108.82 US$/BBL Concer cern over er the e impact act of Brexit exitto global bal Q3 Brent 48 US$/BBL 80 Dubai 56.59 US$/BBL Dubai 105.22 US$/BBL Q4 Brent 50 US$/BBL Spread 2.38 US$/BBL Spread 3.60 US$/BBL econo nomi mic c and oil demand and outl tlook ook 70 FY Brent 45 US$/BBL 60 Outlook look for r the Remain mainder der of 20 2016 16 50 2014 2H actual Brent 90.14 US$/BBL 40 Dubai 88.05 US$/BBL Conti tinu nued ed oversupp supply ly condit ditions ions Spread 2.09 US$/BBL 30 2015 2H actual Brent 47.94 US$/BBL 2016 1H actual 20 EU and China ina econo nomi mic c slow ow down Dubai 45.56 US$/BBL Brent 40.72 US$/BBL Spread 2.38 US$/BBL 10 Dubai 36.80 US$/BBL Decreasin easing g produ ducti ction on as a resu sult t of previou evious s Spread 3.92 US$/BBL 0 CAPEX EX cut t since nce 2014 Jan-14 Q1 Q1 Apr-14 Q2 Q2 Jul-14 Q3 Q3 Oct-14 Q4 Q4 Jan-15 Q1 Q1 Apr-15 Q2 Q2 Jul-15 Q3 Q3 Oct-15 Q4 Q4 Jan-16 Apr-16 Jul-16 Oct-16 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 2015 2015 2014 2014 2016 2016 Narrowi owing ng oversuppl pply y gap supp ppor orted ted by conti tinu nued d growt owth in global al crude de oil deman and Remark: ** Bloomberg Analyst Consensus (CPFC) as of 3 August 2016 (36 estimates) Safety ety Industry try Financi ncial al Outlook look 5

Industry’s cost reduction Capturing market deflation and efficiency improvement continue to be the key focus % Reductio uction in Opera rating ting Expense ense per BOE E Upstr trea eam m Capital tal and Operat rating ing Cost Indic ices es (FY1 Y15 vs FY14) INDEX UCCI UOCI Brent 25% 240 160 21% 21% 20% 16% 16% 140 220 15% 10% 120 6% 6% 200 5% ar 2000) 100 0% MAX MIN 180 se year 80 /BBL ent USD/BB (100 @ Base Peers incl. Anadarko, Apache, Chevron, CNOOC, Murphy Oil, Santos, Shell, Woodside 160 Source: Company’s Announcement based on average leasing operating cost, average 60 production cost and operating expense per BOE Bren 140 • Upstream cost deflation continues albeit recently 40 at a slower rate 120 20 • E&P companies has capitalized on this, together 100 0 with efficiency improvement, at varying degrees 2012 2012 2013 2013 2014 2014 2015 2015 1Q’16 2012 2013 2014 2015 2016 as partly reflected in unit operating expense Remark: UCCI = Upstream Capital Cost Index ; UOCI = Upstream Operating Cost Index Source: IHS CERA Safety ety Industry try Financi ncial al Outlook look 6

M&A Updat ates es A sign of recovery, led by North American transactions Global obal Upstr trea eam m M&A Deal Value ue * Upstr tream am Dea eal Value lue Distr tribu ibution tion by Reg egion on $ Bn $146 $146 Bn Bn $ 4 40 Bn Bn 100% Shell – BG Deal 200 8% Corporate 11% $ 1 178 Bn Bn 4% Asset 1% 80% 5% 23% Russia & Caspian $ 1 146 Bn Bn 150 7% Asia-Pacific 7% 60% 26% Africa & Middle East 100 29% South & Central America 40% Europe $ 4 40 Bn Bn 7% 50 Canada 5% 46% 20% United States 21% 0 0% 2014 2015 2016YTD 2015 2016YTD 2015 2016 6M Global upstream M&A shows a sign of picking up in 2016 compared to FY2015 (excluding BG-Shell transaction), primarily driven by U.S. unconventional transactions and consolidation of Syncrude oil sand position by Suncor in Canada *Remark: includes deal valued over $100 million Source: IHS Safety ety Industry try Financi ncial al Outlook look 7

Thai aila land d Updat ates es Stable gas demand whilst Thai Baht appreciated Thailand’s Natural Gas Consumption by Sector Thailand’s Natural Gas Supply by Source Myanmar 5M 2016 Domestic LNG 5M 2016 Electricity Industry GSP NGV LNG FY 2015 Domestic Myanmar FY 2015 Electricity Industry GSP NGV FY 2014 Domestic Myanmar LNG FY 2014 Electricity Industry GSP NGV 0 1,000 2,000 3,000 4,000 5,000 0 1,000 2,000 3,000 4,000 5,000 MMSCFD MMSCFD Source: EPPO Source: EPPO Exchan hange ge Rate Moveme ment t (THB/USD) B/USD) Thailand’s Gas Market: 40 38.6 .6 (High ighes est) t) 38 • In meeting stable domestic demand, saw a slight 36.37 36.1 .1 36. 0 3 3 5.2 .24 (Ave verage) ge) 36 increase in LNG imports and Myanmar volumes decline 34.7 .7 (Lowes est) t) 3 4.9 .96 34 due to planned shutdown in 1H16 32. 96 96 33.78 32 32.55 Exchange Rate: 30 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 • Continue to be volatile; risk to weakening THB if FED 2015 2015 2016 2016 increases interest rate in 2H16 Source: Bank of Thailand, Bloomberg Forecast based on Bloomberg Consensus as of 18 July 2016 Safety ety Industry try Financi ncial al Outlook look 8

Pat ath to re-te tend nderi ering ng of expir iring ing conces essions sions in in the Gulf lf of Thai aila land More clarity on way-forward, although timely process remains key concern Aug Aug Jan Mar Sep 2016 2016 2017 2017 ~3 months hs Petroleum eum Act and PITA : under the National Legislative Assembly’s review Legislati tion on of Petrol oleum eum Associ ciated ated Laws : under drafting by the MoE Act and associ ociate ated d laws ~5 ~5 months ths • Details and contract models of alternate regimes ~5 months ~5 hs TOR : under drafting by the MoE Terms ms of Refere rence nce (TOR) ~2 ~2 months hs TOR: approval process by the Cabinet ~7 months ~7 hs Tender ering ng Process ss (prelimi minar nary expec ectati tation on) ) Process ss : : Indicative target for dataroom in March and concession award within September 2017 Source: as interviewed by Permanent Secretary, the Ministry of Energy on 2 August 2016 Safety ety Industry try Financi ncial al Outlook look 9

Safety Sa ety Pe Performa formance nce Indu dustry stry Hi Highl hligh ights ts Financial Fi ncial Resul ults ts Out utloo look Safety ety Industry try Financi ncial al Outlook look 10 10