PTT Exploration & Production projects capital and operating expenditures of 418 billion baht to finance its business expansion projects through 2013.

The company told the Stock Exchange of Thailand that capital and operating expenditures in 2009 were projected at 97.14 billion baht, most on the Bongkot, Arthit, Malaysia-Thailand Joint Development Area, Pailin and Yetagun projects. Capital expenditures this year are projected at 70.19 billion baht, with operating expenditures totalling 26.95 billion.

PTTEP, a unit of PTT Plc, has 42 projects, including 15 under production, four under development and 23 under exploration. The figure excludes the projects of Coogee Resources, an Australian firm about to be acquired by a PTTEP subsidiary.

The company projected capital expenditures from 2009-13 at 302.65 billion baht, with operating expenditures of 115.34 billion. Petroleum sales are projected at 234,878 barrels of oil equivalent per day (boed) this year, 261,398 boed in 2010 and 293,825 in 2013.

PTT also announced that its petrochemical venture, PTT Asahi Chemical, had arranged a $400 million syndicated loan. PTT Asahi is a joint venture 48.5% owned by PTT, 48.5% by Asahi Kasei Chemicals and 3% by the Marubeni Corp.

The new plant in Map Ta Phut will produce 200,000 tonnes yearly of acrylonitrile (AN) and 70,000 tonnes of methyl methacrylate (MMA). Due to start commercial operations in late 2010, the project's value is $900 million, half financed by debt and the rest from equity.

The loan was arranged by The Bank of Tokyo Mitsubishi-UFJ Ltd, Mizuho Corporate Bank Ltd, The Norinchukin Bank, Sumitomo Mitsui Banking Corporation, The Sumitomo Trust & Banking Co Ltd, HSBC and ING Bank NV.

"Since we succeeded in receiving loans of $400 million so far, the remaining $500 million will be in baht terms from local banks," said Pailin Chuchottaworn, the PTT Asahi president.

"Our plant is applying the utmost technology of our Japanese partner Asahi. We are the first in the world to use propane from a gas separation plant as feedstock. Others still use propylene, normally a byproduct of olefins production, but we can cut the costly process to gain feedstock supply," Mr Pailin said.

PTT shares closed yesterday on the SET at 184 baht, down five baht, in trade worth 2.78 billion baht, while PTTEP closed at 120 baht, down three baht, in trade worth 1.92 billion baht.