Thailand’s flagship upstream oil and gas company swung to a consolidated net loss of $854 million last year, as the price of Dubai crude oil averaged $50.91 per barrel, shrinking 47 per cent from 2014, while it took an additional $388-million loss from impairment of assets.

With Dubai crude trading at about $35 a barrel yesterday, Somporn told reporters PTTEP was likely to achieve the goal of slashing its unit production cost from $39 a barrel last year to around $35 this year.

It will also keep production volume close to last year’s 322,000 barrels per day of oil equivalent.

“We would have made a profit if oil prices had averaged $39 a barrel last year,” he added.

PTTEP has set out three main strategies to weather the prolonged oil price slump this year: Reset, Refocus and Renew.

The Reset strategy calls for a sustainable cost reduction, while the Refocus plan involves a shift of focus back to Thailand and other Southeast Asian markets, he explained.

The CEO said that, sitting on a cash pile of $3.2 billion, PTTEP did not rush to buy up shale oil or shale gas assets in North America when other firms had done so, because it foresaw more interesting opportunities arising closer to home.

“We have our shopping list. But we don’t want to be ‘overvalued’ in a purchase.

“This year, the timing is appropriate. Last year, there were volatilities [in oil prices],” he said.

“Big [oil] companies have started to adjust their portfolios and offer to sell [their assets], since they do not view this region [Southeast Asia] as their main focus – and that is an opportunity for PTTEP,” he added

Earlier this month, Reuters quoted banking sources as saying that US oil giant Chevron was looking to sell its gas assets in Myanmar, which are worth an estimated $1.3 billion.

PTTEP, Australia’s Woodside Petroleum, Japanese trading houses and Chinese companies were cited as among the potential buyers of Chevron’s assets, which include its 28.3-per-cent stake in the Yadana and Sein gas fields operated by France’s Total in the Andaman Sea, a stake in the Myanmar-Thailand gas pipeline, and a 99-per-cent holding in exploration Block A5 in the Rakhine basin.

Somporn said the US company’s reported offer presented an opportunity for PTTEP, which would like to increase its assets in Thailand and Myanmar from the current 70-80 per cent of its total portfolio.

However, PTTEP needed to study the details and he could not comment specifically on the matter at this stage, he added.

The Refocus strategy also calls for PTTEP to reduce its stakes in high-risk areas.

It also entails pushing ahead for on-time execution of its liquefied natural gas (LNG) project in Mozambique, as well as supporting development of government-to-government relationships to enhance investment opportunities in countries such as those in the Middle East, he told reporters.

The third strategy, Renew, involves increasing its investments in LNG business together with its parent firm PTT, and studying new businesses such as renewable energy.

The company has set up teams to study opportunities in renewable-energy businesses, such as solar power, wind power, minerals and batteries.

Somporn also said PTTEP was still undergoing negotiations to acquire a 22-per-cent stake from British Gas Asia Pacific in the Bongkot gas field in the Gulf of Thailand, where the Thai company already has a 44-per-cent holding.