PTTEP gains full control of MTJDA block A-18 and strengthens Thailand’s energy security
Thai oil and gas giant PTT Exploration and Production (PTTEP), has secured full ownership of Block A-18 offshore gas block in the Malaysia-Thailand Joint Development Area (MTJDA) by gaining 50% participation rights.
This move will enhance Thailand’s energy security and support PTTEP’s growth trajectory.
MTJDA’s Block A-18 is essential for power generation in the southern region of Thailand.
This profit is acquired by PTTEP Co-Development SG from Hess International Oil Corporation, a subsidiary of PTTEP. It holds 50% interest on MTJDA’s Block A-18 through its subsidiary under the Sales and Purchase Agreement (SPA).
The acquisition, with a basic consideration of $450 million, subject to standard adjustments, is Merger of Chevron and Hesstogether with both sellers, Hess (Bahama) Limited and Hess Asia Holdings, is a wholly owned subsidiary of Chevron.
The now-closed transaction will quickly increase PTTEP’s gas production and oil reserves, double the company’s investment in MTJDA, and raise the interest of the existing 50% of Block B-17-01.
Block A-18 currently produces 600 million cubic feet of natural gas (MSCF/D) per day, half of this volume is supplied to Thailand, accounting for 6% of the domestic gas demand.
The company will also implement developments to build additional production wells, wellhead platforms and gas pipelines to ensure a stable and reliable gas supply.
“We are pleased to announce that PTTEP CEO Montri Rawanchaikul said: “PTTEP is pleased to further expand its operations at MTJDA, where oil is recognized for its potential and strategic significance for Thailand’s energy security. This acquisition has also contributed to the growth of the company.
“Apart from existing production areas, Block A-18 includes several discovered gas fields awaiting development to reach its full potential. Participation in Block A-18 will promote operational synergy with Block B-17-01, increasing efficiency to ensure the continued and accelerated energy supply of both countries.”
Located in the southern part of the Gulf of Thailand, MTJDA spans approximately 7,250 km² and is an important source of natural gas and condensate for both Thailand and Malaysia.
Block A-18 includes the Southfields Kakerawala, Bumi, Surya, Moon and Moon, which commented on production in 2005.
Block B-17-01, which includes Amarit, Andalas, Jengka, Melati, Young and Tanjung Fields, is separate from production in 2010 and currently offers approximately 300mcf/D of natural gas to Thailand and Malaysia.