Thailand’s oil and gas giant PTT Exploration and Production (PTTEP) has secured complete ownership of the Block A-18 offshore gas block in the Malaysia–Thailand Joint Development Area (MTJDA) by acquiring a 50% participating interest.
This move will bolster Thailand’s energy security and support PTTEP’s growth trajectory.
Block A-18 of the MTJDA is crucial for electricity generation in Thailand’s southern region.
The interest has been acquired by PTTEP’s subsidiary, PTTEP Joint Development SG from Hess International Oil Corporation, which holds a 50% interest in Block A-18 of the MTJDA through its subsidiaries under a sale and purchase agreement (SPA).
The acquisition, with a base consideration of $450m subject to standard adjustments, follows the merger between Chevron and Hess, with both sellers, Hess (Bahamas) Limited and Hess Asia Holdings, being wholly owned subsidiaries of Chevron.
The transaction, now completed, immediately increases PTTEP’s gas production volume and petroleum reserves, and doubles the company’s investment in the MTJDA, adding to its existing 50% interest in Block B-17-01.
Block A-18 is currently producing 600 million standard cubic feet of natural gas per day (mscf/d), with half of this volume supplied to Thailand, representing 6% of the nation’s domestic gas demand.
The company will also carry out the development of additional production wells, wellhead platforms and the construction of gas pipelines, ensuring a stable and reliable gas supply.
PTTEP CEO Montri Rawanchaikul said: “PTTEP is pleased to further expand our operations in the MTJDA, which is recognised for its petroleum potential and strategic significance to Thailand’s energy security. The acquisition also contributes to the company’s growth.
“Apart from the existing producing fields, Block A-18 includes several discovered gas fields awaiting development to unlock their full potential. Participation in Block A-18 also fosters operational synergy with Block B-17-01, enhancing efficiency to ensure continuous and accelerated energy supply for both countries.”
The MTJDA, located in the southern part of the Gulf of Thailand, spans approximately 7,250km² and is a vital source of natural gas and condensate for both Thailand and Malaysia.
Block A-18 encompasses the Cakerawala, Bumi, Suriya, Bulan and Bulan South fields, which commenced production in 2005.
Block B-17-01, which includes the Amarit, Andalas, Jengka, Melati, Muda, Tapi and Tanjung fields, began production in 2010 and currently contributes approximately 300mcf/d of natural gas to Thailand and Malaysia.