Thailand’s PTT Exploration and Production (PTTEP) has taken a decisive step in its energy strategy by acquiring 50% of Block A-18 in the Thailand-Malaysia Joint Development Area, known as MTJDA, which has an area of approximately 7,250 km². This transaction, valued at US$450 million, strengthens the company’s supply of natural gas in southern Thailand.
Strategic agreement with Chevron for gas block
The operation was carried out through the purchase of 100% of the shares of Hess International Oil Corporation, a company whose participation was held by Hess (Bahamas) Limited and Hess Asia Holdings Inc, both subsidiaries of Chevron. With this move, PTTEP increases its investment and has a direct presence in two critical MTJDA blocks: A-18 and B-17-01.
[post_relacionado]Block A-18 currently produces 600 million standard cubic feet of gas per day. This production is split evenly between Thailand and Malaysia, providing Thailand with 6% of its total gas demand. This proportion makes the field a vital source for power generation and industrial consumption in the southern region of the country.
Sustained growth
According to Montri Rawanchaikul, CEO of PTTEP, this acquisition strengthens the country’s energy security and is in line with the company’s sustained growth. In addition to producing fields, the block contains discovered reservoirs still awaiting development. Joint management with Block B-17-01 will allow for greater operational efficiency.
PTTEP plans to drill new wells, install additional platforms and develop pipelines to connect existing production systems. These actions are aimed at accelerating the rate of extraction and improving the continuity of energy supply in the region.
Follow us on social networks and don’t miss any of our publications!
YouTube LinkedIn Facebook Instagram X (Twitter) TikTok
Source and internal photo: PTTEP
Photo: shutterstock