PTTEP, Thailand’s national E&P company, has signed an agreement to buy 100% of the outstanding shares of Hess International Oil Corporation, which holds a 50% participating interest in the offshore natural gas Block A-18 of the Malaysia–Thailand Joint Development Area (MTJDA). The purchase deal is valued at $450 million (USD). Both sellers, Hess (Bahamas) Limited and Hess Asia Holdings Inc., are wholly owned subsidiaries of Chevron following Chevron’s takeover of Hess Corp.
Image: PTTEP
This transaction immediately enhances PTTEP’s gas production volume, petroleum reserves, and increases the company’s investment in the MTJDA from the existing 50% participating interest in Block B-17-01, PTTEP said in a news release.
Block A-18 currently produces 600 million standard cubic feet of natural gas per day (MMscfg/d) which is equally distributed to Thailand and Malaysia. The 300 MMscfg/d supplied to Thailand accounts for 6% of the country’s domestic gas demand.
“PTTEP is pleased to further expand our operations in the MTJDA, which is recognized for its petroleum potential and strategic significance to Thailand’s energy security,” said Mr. Montri Rawanchaikul, CEO of PTT Exploration and Production Public Company Limited (PTTEP). “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.”
Additional production wells and wellhead platforms, along with gas construction of gas pipelines, will be developed to support a consistent and reliable gas supply.
MTJDA is located in the southern part of the Gulf of Thailand. Covering an area of approximately 7,250 square km, it is a key source of natural gas and condensate for Thailand and Malaysia.
