Montara wellhead platform: on fire earlier this week
PTTEP hopes for Montara start-up in 2010
Thailand's PTT Exploration and Production (PTTEP) said today the start-up of the Montara field in Australia might be delayed from the first quarter of 2010 to an unspecified date later in the year.
Chief executive Anon Sirisaengtaksin told an analysts' meeting the company's financial performance would be "good" in the fourth quarter even though it had to book more expenses related to an oil spill at Montara from late August.
"We'll try to make it within 2010. We have to wait for the result of the assessment on the damage. It should become clearer next week," Reuters quoted Anon as saying.
Last week Anon had said operations at Montara might start in the second quarter of next year.
A PTTEP subsidiary said on Tuesday it had stopped the oil leak and doused the main fire on the Montara and West Atlas oil rig in the Timor Sea.
PTTEP shares hit a four-month low this week on concern the delay in Montara's start-up would hit its earnings in 2010, and that damage costs might exceed its insurance coverage of $270 million.
In the third quarter, PTTEP booked about $150 million in Montara-related expenses, excluding costs related to the fire, Anon said, adding it would start booking insurance claims from the fourth quarter.
Today, PTTEP shares closed up 3.5% at 134.50 baht, while the overall market was up 2.7%.
PTTEP, a subsidiary of top energy company PTT , had planned to produce about 35,000 bpd from the Montara field, which would have boosted its 2009 petroleum sales to 240,000 bpd.
The spill prompted PTTEP to cut its 2009 sales target by 3% to 5%, and it warned that it could miss its 2010 sales target.
The Montara field could be one of the main sources of profit for PTTEP in future. Many analysts expect higher output from new oil and gas fields to boost sales.
PTTEP owns 100% the Montara field through its wholly owned Australasia, formerly known as Coogee Resources, which it acquired this year.
Anon said fourth-quarter petroleum sales were expected to be close to the 234,601 barrel of oil equivalent per day in the third quarter, while selling prices should be above the almost $40 a barrel it had in the the previous quarter.