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We attended PTT’s site visit on Friday and met with management to discuss its new five-year CAPEX plan and LNG business. There were no major surprises, and the key positive message was the discussion about a potential downward revision to PTT Exploration and Production (PTTE.BK/PTTEP TB)’s* ambitious target of 900KBOED for 2020, which was based on 30% of Thailand’s expected energy consumption in 2020. The reduction is due to increasing contribution from coal and biofuels into the energy mix which would help reduce the burden on PTTEP to meet the country’s energy needs. This should be positive for PTTEP as it would reduce the capital raising risk for the company and is in line with our expectation (see KGI’s “PTTEP: Risk of capital raising is easing” – dated 14 December 2011). We reiterate our Outperform rating on PTTEP at a target price of Bt200.00. We rate PTT Outperform with a target price of Bt400.00.