PTTEP grows in Australia

       PTT Exploration and Production Plc (PTTEP) is expanding its upstream oil business in Australia through an acquisition of OMV Timor Sea Pty.
       PTTEP Australia Browse Basin, which is wholly owned by PTTEP, has signed a share sales agreement to purchase 100% of OMV Timor Sea from OMV Pty Australia, chief executive Anon Sirisaengtaksin said yesterday.
       The acquisition will allow PTTEP to acquire petroleum exploration rights for five blocks and two offshore oil fields in a transaction worth US$10 million (about 335 million baht).
       In January, Thailand's largest petroleum exploration and production company won approval from Australian regulators for the $170-million purchase of Coogee Resources Ltd as its first acquisition there.
       "Our new acquisition in Australia is a part of PTTEP's strategic plan to seek opportunities in target countries with petroleum potential," Mr Anon said.
       "The new investment is aimed at generating potential synergies of existing assets and adding value of investment profiles while ensuring the company's growth in the long term."
       OMV Timor Sea owns offshore exploration and production assets in northwestern Australia. It currently invests in Audacious and Tenacious offshore fields, where production is targeted to start within two years.
       The Australian company also owns five exploration blocks and holds an 18.75% interest in the Jabiru and Challis oil fields in the southern Timor Sea,which PTTEP now operates with 70.94%ownership.
       Maroot Mrigadat, the PTTEP president, said the new acquisition would help the company develop its oil and gas exploration and production in Australia, a key strategic objective.
       The deal is also expected to cut operating expenses and provide material developments as well as exploration upside from prospects accessible from key oil and gas projects, said Mr Maroot.
       Located 650 kilometres west of Darwin in the Northern Territory, the Jabiru and Challis fields began oil production in 1986 with output of 4,200 barrels per day. The blocks have estimated net proven reserves of 700,000 barrels of oil equivalent as of May 2009.
       OMV Timor Sea has also been granted exploration and production licences for five offshore projects with estimated net proven reserves of 3.4 million barrels of oil equivalent.
       PTTEP has expanded its business steadily through investments in 13 countries to date.
       In another development, parent PTT Plc has signed an agreement with Tunn Star Co to jointly develop a lubricant business in Burma. Over five years through 2014, the alliance aims for annual lubricant sales of 5 million litres in Burma from next year onward.
       "The lubricant market in Burma is very competitive with more than 100 operators including local and foreignowned brands," said Artasith Pothiapinyanvisuth, PTT's executive vicepresident for commercial and international marketing.
       By joining with a Burmese distributor,PTT aims to become one of the top five lubricant brands there within three years, he added.
       PTT now markets its lubricants in several overseas markets including the Philippines, Vietnam, Greece, Pakistan,Nigeria, New Zealand and China. The company leads Thailand's lubricant market with a 36.8% share.
       PTTEP shares closed yesterday on the Stock Exchange of Thailand at 146.5 baht, down 1 baht, in trade worth 985 million baht, and PTT finished at 262 baht, down 3 baht, in trade worth 1.07 billion baht.