PTTEP acquires a 50% participating interest in Block A-18 of the Malaysia–Thailand Joint Development Area (MTJDA), which is strategically important to Thailand’s energy security and supports the company’s growth.
Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), stated that PTTEP Joint Development SG PTE. LTD., the company’s subsidiary, has signed a Sale and Purchase Agreement (SPA) to buy 100% of the outstanding shares of Hess International Oil Corporation, which, through its subsidiaries, holds a 50% participating interest in Block A-18 of the Malaysia–Thailand Joint Development Area (MTJDA) — a natural gas resource fundamental to electricity generation for Thailand’s southern region. The base consideration was USD 450M, subject to normal purchase price adjustments. Both sellers, Hess (Bahamas) Limited and Hess Asia Holdings Inc., are wholly owned subsidiaries of Chevron following the Chevron and Hess merger.
This transaction is now completed and 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.
Block A-18 currently produces 600 million standard cubic feet of natural gas per day (MMSCFD), which is equally distributed to Thailand and Malaysia. The 300 MMSCFD supplied to Thailand accounts for 6% of the country’s domestic gas demand.
Upon completion of the acquisition, the development of additional production wells and wellhead platforms, along with gas construction of gas pipelines, will be carried out to support a consistent and reliable gas supply.