CBD Business Plan 2008 – 2012 October 2007
Content CBD Business Plan 2008 - 2012
1. Vision 2. Objective / Target 3. Strategy 4. Work Plan & KPI 5. Resource requirement
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Vision CBD Business Plan 2008 - 2012
To support PTT Group's long term goal of becoming an Asian Energy Major by focusing on strategic investment opportunities as integrated value chain of group capitalization, which provid es gas supply security to Thailand, growth in for eign operational income, and attractive returns.
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A High Aspiration: Asian Top 5 In Most Key Business Areas
2006 “Asian Energy Major”
Group
$27 Bn Rev.
2020 #265*
$20 Bn Mkt. Cap
EP
Gas
$50-60 Bn
Top 100*
$60-90 Bn
“Asian Gas Major” • Indo-China basin master with global E&P footprint
180 kboe/d
#16
1,000 kboe/d
Top 5
• Integrator of Asian gas
3 Bcf/d sales
#4
9 Bcf/d
Top 3
Top 5
and LNG
Petchem
“BASF of ASEAN”
USD 7 Bn revenue
#13
USD 15-20 Bn
Refining
“Resilient refining & aromatics player”
Fragmented 855 kboe/d
#5
Integrated Top 10 370-855k boe/d
New business
“Asian Biofuel and None Energy Solution pioneer” *
29 MMB/yr
Fortune global ranking, assuming an additional $40-60 Billion from Trading (3x-4x velocity)
Top 5
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Strategic Intents Drive Specific Sector Actions Roles in Portfolio Business Areas
E&P
“Core value creators”
Strategic actions
Grow aggressively in Thailand Plus and beyond
• Create value & achieve international revenue target beyond 20% of total revenue (excluding trading revenue)
Expand regional & international network, pursue growth vigorously
• Encourage power sector-hydro/others
Refining
“Integrated value enhancers”
Petrochemical
up da tin
g
Gas
Strategic Intents
Restructure & Consolidate & expand 'cautiously‘
Marketing
Reduce cost and Review Retail Strategy
Trading
Lead group trading needs and build capabilities
• Consolidate and establish flagship • Selectively expand to meet PTT investment criteria • Consolidate related affiliates and review options for IRPC • Limit investment to sustain existing capital • Continue network rationalization • Review and Define Retail Strategy and Business Models for oil and non-oil • Further pool trading products of group companies • Build trading capability & network
Deployment from CSD’s Objectives
CSD ’s Objectives
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Internal Perspective • Tie-up strategy between EP & Gas in Execute Strategic Pipeline Network Roadmap to Secure LT Supply
up d
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Internal Perspective • Capture International Growth Opportunity
Internal Perspective • Manage PTT Group Portfolio
CBD ’s Objectives CBD1 Coordinate Indo-China Basin Opportunities
CBD2 Coordinate and Pursue LNG Opportunities
CBD3 Identify and Pursue Attractive Investment Opportunities/Corporate M&A CBD4 Enhance Organization for International Business CBD5 Management common KPI Complied with CSD Objective and KPI updated 15 Jan 2007- 6 -
Objective/Target CBD Business Plan 2008 - 2012
•
Consolidate international growth road map and execute plan to strengthen PTT’s position in Indo-China basin to support PTT long term goal of becoming Asian Energy Major
•
Support LNG procurement of up to 10 MTPA by 2018 by packaging investment with LNG supply contract
•
Pursue attractive investment opportunities which in line with corporate strategy
•
Continuously develop M&A and business development capabilities
•
Achieve International Revenue of 20% by 2011
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Strategies CBD Business Plan 2008-2012
1.
Packaging investment along value chain to capture synergies, increase bargaining power and mitigate risk.
2.
Pursue attractive opportunities that provide strategic fit through various approaches e.g. JV, M&A approach
3.
Leverage on existing international business operations and G-to-G relationship to capture potential investment opportunities
4.
Alliance with strong international and local partners for new territories.
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CBD Road Map for International Growth
2006 CBD
(Corporate Business Development)
BD ad hoc Team
Essential Project Team
Central BD/M&A Unit
2007
2008
2009+
Formulate Roadmap
Execute short term opportunities
Coordinate Strategic & high value opportunities
Organization preparedness
Handle PTT value chain International BD and M&A activities
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Work Plan & KPI CBD Business Plan 2008-2012
Work Plan 1.
Coordinate High Strategic Value Opportunity 1.1 Myanmar - Gas development (M9) - GSA negotiation - Gas p/l from M9 - domestic gas & oil p/l - deep sea port & oil terminal - Reserve acquisition/ E&P 1.2 Cambodia - OCA resolution - Gas p/l from OCA - Koh Kong Development :GSP/Power plant/P&R complex/deep sea port - Reserve acquisition/E&P 1.3 Indonesia - Natuna P/L - Gresik-Semarang P/L - Tangghu LNG - Industrial Oil Mkt. - Reserve acquisition /E&P 1.4 LNG - ME (Qatar, Iran) - Australasia (Australia,PNG) - North Africa (Egypt, Algeria)
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Work Plan & KPI CBD Business Plan 2008-2012
Work Plan 1.
Identify & pursue attractive investment opportunities /Corporate M&A 3.1 Execute identified opportunities : Taxila/Robin/GresikSemarang/Kedah- Songkhla/Kazakhstan/Vanda/Hua Sai/ Pattani 3.2 Assessment & pursue new opportunities 3.3 Identify & execute corporate M&A
2.
Enhance organization for international business 4.1 Capitalize existing oversea offices 4.2 Augment processes 4.3 Development of international staffs
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Work Plan 1. Coordinate High Strategic Value Opportunity 1.1 Myanmar
Map
Objective : to secure reserve in Myanmar to capture business opportunities where PTT has strength to link gas supply back to Thailand Strategy: ???? Potential Projects : Gas development (M9) M9 GSA negotiation Gas p/l from M9 Domestic gas & oil p/l Deep sea port & oil terminal Reserve acquisition/ E&P
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Work Plan 1. Coordinate High Strategic Value Opportunity 1.1 Myanmar Key Activities
Responsible Unit
2008
2009
2010
2011
2012
2013
2014
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Work Plan 1. Coordinate High Strategic Value Opportunity 1.1 Myanmar Key implementation steps : in 2008 Key Activities
Responsible Unit
2008 Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
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