Soco FY profit up, sees two key fields on stream in coming months UPDATE
03.26.08, 5:45 AM ET
Pretax profit rose to 57.1 mln usd in 2007 from 48.1 mln previously, while net profit grew to 32.3 mln usd from 29.1 mln. Revenue increased to 98.4 mln usd from 76.5 mln on higher oil prices which offset the impact of a fall in production to 6,316 barrels per day from 6,766 barrels.
Ed Story, the chief executive, gave an upbeat view of the future, with two of the group's main projects expected to start production in the next few months.
The CNV field in
'With near term production from the CNV field in Vietnam and the Bualuang field in Thailand, medium-term development and exploration upside in Vietnam and long-term exploration potential in West Africa, we are very optimistic about Soco's future growth prospects,' he said.
Story told Thomson Financial News in a phone interview CNV is capable of producing around 20,000-25,000 barrels of oil equivalent per day, while Bualuang could pump around 16,000 barrels of oil a day. Soco holds a 25 pct stake in CNV and a 40 pct interest in Bualuang.
Oil from Bualuang will be supplied to domestic refineries, while output from CNV will be exported to
Proceeds from the disposal will fund the group's aggressive exploration and development projects, including the TGT field on Block 16-1 in
Story said the consortium developing TGT, in which Soco is a 30 pct shareholder, will be embarking on a 'fast-track' programme aimed bringing the field on stream by 2010.
TGT is expected to initially pump around 50,000 barrels a day, which could go up to 150,000 barrel, Story added.
For 2008, Soco is allocating 180 mln usd to fund its ongoing projects, the same amount it spent in 2007, he said. The group's capital spending rose to 179 mln usd in 2007 from 114 mln usd last time.