PTT T Explo loration ration an and Production oduction Public lic Co Comp mpany any Li Limit mited ed Q1 2017 017 Ana nalyst lyst Mee eeting ting Ban angkok gkok 15 May ay 2017 17
Sa Safety fety Pe Performa rformance nce Industry ustry High ghlights ights Financial nancial Pe Perform rforman ance ce Operat rational ional Outlook tlook & G & Gro rowth wth
Prio iority rity on Saf afety y an and Sustai ainabilit ability Significant cost reduction without compromising on SSHE Saf afety ety DJSI JSI Listed ted for th three consecutiv secutive e years Maintain ntain high safet ety y sta tandar ndard # of incidents per million man hours (Lost time injury incident frequency, LTIF) Industry Benchmark PTTEP 1.0 PTTEP is sele lect cted ed for the DJS JSI I World ld Oil and Gas Upst pstream ream & Integra egrated ed Indu dustry ry with h the high ghest est score re in 2016 and also 0.5 awarde ded d the Robec ecoSA SAM Gold d Class Sustain inabili bility y Award rd 2017. 0.17 0.0 2009 2010 2011 2012 2013 2014 2015 2016 YTD Safet ety y of PTTEP EP employe loyees es and contract actors ors in ever ery y aspe pect ct of our oper eratio ations ns is key to achieve hieve the goal al of of “Target Zero ” 3
Sa Safety fety Pe Performa rformance nce Industry ustry High ghlights ights Financial nancial Pe Perform rforman ance ce Operat rational ional Outlook tlook & G & Gro rowth wth
Oil il Pric ices es Gradually recovered but still ambiguous Bren ent Dubai ai Min-Max Max Bren ent Analyst lyst Conse sens nsus* us* US$ / Barrel rel Compli pliance r ance rate ate 90 90 2017 consensus OPEC: : 104% 104% 80 80 FY Brent 55 US$/BBL achie ieved ved 2017 Q2 c onsensus 70 70 Brent 55 US$/BBL Production from most members 60 60 bound by the six-month output deal edged lower 50 50 2017 Q1 actual 40 40 Non-OP OPEC: EC: 64% Brent 53.7 US$/BBL 2016 2H actual 30 30 achie ieved ved Dubai 53.0 US$/BBL Brent 47.7 US$/BBL Improved compliance led by further 20 20 Dubai 45.7 US$/BBL 2016 1H actual output cuts in Russia Brent 40.7 US$/BBL 10 10 Dubai 36.8 US$/BBL 0 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 Source: IEA (as of March 2017) Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 2016 2016 2017 2017 Q1 2017 Highlights ghts Outl tlook ok from m the Remain ainder der of f 2017 Continued inued growt wth h in crude ude oil demand and High h complianc pliance e on the product duction ion cut agreemen eement by OPEC and Non-OP OPEC EC members ers Risin sing g tens nsio ion n among ng the US and Mid iddle le East The re-san sanct ctio ionin ning g of Iran n by the US and unres est situatio uation n The rene newal wal of the product uction n cut agree eement ment in Middle e East Addit itio ion n supply ly from m the US follo lowing ing oil price ice recovery ery Reocc ccur urren ence ce of supply ly glut situatio uation n driv iven en by incr creas easing ing product uctio ion n from m the US Remark: ** Bloomberg Analyst Consensus (CPFC) as of 5 May 2017 5
2017 17 Glo lobal al Upstre ream am Grow owth th Outlook look A sign of industry recovery through capital investments and M&A activities Investment stment M&A A Activiti ivities Upstrea ream m Explo plora ratio ion n and Deve evelop lopmen ment CAPEX Upstrea ream m Deal l Value lue Dis istribu ributio ion n by Region* ion* 50 5 2016 2017 40 4 $ 7 70 Bn Bn $ 1 135 Bn Bn Unit: Billion USD 100% 30 3 20 2 80% United States 10 1 Canada 60% - - Europe Mi Mid/ d/Smal all-C -Cap ap NOC La Large-C ge-Cap ap South & Central America Investments are expected to rise in 2017 targeting to boost 40% Africa & Middle East production. However, the capital allocation will be moved towards smaller, Asia-Pacific 20% incremental and short-cycle opportunities. Russia & Caspian Produ oduct ction ion 0% 2016 2017YTD Oil production is still likely to increase while global gas markets are oversupplied Global al M&A activiti ivities es have e picke cked up since ce 2H16, , mainly nly driven by the recovery in oil prices. Major deal activities occurred in Gas Tight ht oil North America i.e. US Shale and Canadian Oil Sands. However, Chall llen enge ge from m LNG Tight oil’s role as the there were only a few deals in South East Asia including Shell’s market et to r ramp-up up world’s new swing Bongkot stake divestment to KUFPEC. capaci city y durin ing g 2017 produ duce cer Remark: *Includes deal over $100 million and excludes Globally Diversified transactions Source: Wood Mackenzie Source: IHS 6
2017 17 Glo lobal al Upstre ream am Cost t an and Re Regulations lations Outlook look Efficiency driven to maintain low cost base and major reform of fiscal terms Cost to bottom om out with h lesser r room to impro prove ve Upstrea eam m Capital al and Operatin ating g Cost Indice ces 240 160 • Massiv sive CA e CAPEX EX reducti ction o on over er the 140 220 past 2 years reflec ected ted from the e lean 120 operat ational nal proces ess r 2000) 2000) 200 D/BBL 100 e year • From m service e sector or point of view, 180 t USD/ 80 there re shoul ould d be only room for small (100 @ Base 160 Brent reduct ction 60 140 40 UCCI (Upstream Capital Cost Index) • Progres ess s on further rther reducti ction on in UOCI (Upstream Operating Cost Index) 120 20 expenditu nditure re toward rds s 2017 will arise e Brent from m efficiency ency drive 100 0 2014 2015 2016 2014 2015 2016 2017 Source: IHS CERA Fiscal al rule les s to enhance ce scarce e investme tment t • To attra ract ct investm tment, ent, country try with uncompeti ompetiti tive fiscal al regimes mes shou ould d consider der the e significant cant reform rm toward rds th s the e risk-re reward ard balance ce • These se initiati tive e mome mentums ntums recentl ntly seen in Brazil, Mexico, o, Nigeria a and Aust strali ralia Source: Wood Mackenzie 7
LNG Updat ates Global supply glut peak in 2020 and expect to rebalance after 2023 Global LNG Deman mand d & Su Supply ply Si Situati ation on LNG Situati ation on for Asian n Market LNG Incre remental tal Supply y to 2020 Asia’s Potential LNG Supply/Demand 120 Corp rpus us Christi sti 100 PFLNG NG Dua Freeport rt & & 80 80 Camero ron MMTPA Equivalent 60 60 Cove Point Ichthys thys 40 40 Wheatst tstone 20 20 0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Total 2016 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 LNG 2019 2019 2020 2020 Supply LNG Global al Demand 2016 2020 2030 400 322 Asia ian n LNG dema mand nd contin inues ues • Incremental demand from China and India will drive to domin inate e market et 300 Unit: MMT of LNG 226 Asian LNG Market 185 200 99 • Asian demand fully contracted in 2018, and Asia spot 88 100 40 35 21 19 18 LNG prices are expected to be low in the short to 19 17 0 medium-term. Ame merica icas MEN ENA Eu Europe Asia ia Global LNG Balance: Expects the LNG supply growth by 40% in 2020 mainly from Australia and US. This leads to oversupply during 2017-2023 and will push LNG to sink markets, causes shut-in liquefaction plants and create new demand; before rebalancing after 2023. Source: FGE, LNG Market Pressure Points, December 2016 8
Sa Safety fety Pe Performa rformance nce Industry ustry High ghlights ights Financial nancial Pe Perform rforman ance ce Operat rational ional Outlook tlook & G & Gro rowth wth
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