Pannalin Mahawongtikul, PTTEP's executive vice-president for finance and accounting, said first-quarter production unit costs were below the target because it booked higher petroleum reserves.
Since the oil price collapse in 2014, PTTEP has cut production costs per unit by 11% from $43.45 at the end of 2014 to $38.50 last year. This year it targets cutting production cost per barrel another 10% to $34.
She said the target was based on an average Dubai crude oil price of $45 this year.
PTTEP also plans to slash its operation and capital expenditure (capex) by 10% to $3 billion this year, with capex making up two-thirds. The $2-billion capex aims to keep petroleum output at 322 kilo-barrels of oil equivalent per day.
While upstream petroleum companies worldwide are seeing liquidity dry up, PTTEP's credit rating has remained steady at Baa 1 with a stable outlook, reported Moody's Investors Service rating. This will allow the company to buck the international trend and avoid staff layoffs.
Chevron Thailand Exploration and Production Ltd has announced plans to lay off 800 workers in Thailand, about 20% of its workforce of 3,900 people h