* Seeks 10-20 pct stake in Petronas' SK 316 gas block
* Plans to develop gas to power project in
* Reduce avg oil-gas cost to
* Eyes expiring concessions in Mideast to add to output(Adds further comment from PTTEP executive, details oninvestment plans)
By Florence Tan
"Now we're coming back more to the region. We're goodfriends with (
PTTEP has invested in 10 percent of Train 9 of MLNG and isexploring offshore block SK410B in
Last year, state-owned Petroliam Nasional Bhd (Petronas)kicked off a process to sell a stake of up to 49percent, worth an estimated
Besides PTTEP, Total and some Japanese firms arealso among those keen to bid for the asset, sources have said.
PTTEP also plans to bid for the Erawan and Bongkot gasconcession licences in an auction scheduled for April, anotherchance to raise its output and reserves.
The Thai government is due to announce the winners inDecember, which will give the companies time to invest tosustain a combined gas output of 1.5 billion cubic feet a dayfrom the fields before the concessions expire in 2022,Phongsthorn said.
PTTEP, which has
"We're looking to extend ourselves a little," he said.
Since the oil crisis in 2014, PTTEP has undergone cost cutsand increased efficiency which saw its average cost of oil andgas production falling to
Still, ratings agency Fitch expects PTTEP's reserve profileto remain weak for the next two years as the majority of itsassets are located in
PTTEP already holds an 8.5 percent stake in a
"We are still trying to work out if PTT could commit to thisvolume (from
"The LNG market in the next few years could see more demandand supply could shrink a little. Everyone stopped investing forsome time and our industry needs time (to develop assets). Ithink in the future, you'll see short supply," he said.
PTTEP is also exploring solar power and batteriestechnologies for new revenue stream as it adapts itself to a newenvironment, Phongsthorn said.
Falling costs for solar panels have made them a viableelectricity source, and oil companies expect electric vehiclesto reduce oil demand after 2030.(Reporting by Florence Tan; Additional reporting by ChayutSetboonsarng in