PTTEP, Thailand's national E&P company, has signed a purchase agreement for the acquisition of 100% of Hess International Oil Corporation's shares, which holds a 50% participating interest in Malaysia–Thailand Joint Development Area (MTJDA) offshore natural gas Block A-18. The price of the acquisition of it is $450 million (USD). Both sellers, Hess (Bahamas) Limited and Hess Asia Holdings Inc., are Chevron's wholly owned subsidiaries after Chevron purchased Hess Corp.
This transaction immediately enhances PTTEP's volume of gas production, oil reserves, and doubles PTTEP's investment in the MTJDA to the existing 50% participating interest in Block B-17-01, said PTTEP in a press release.
Block A-18 produces 600 million standard cubic feet per day of natural gas (MMscfg/d) that is divided equally to Malaysia and Thailand. The 300 MMscfg/d delivered to Thailand accounts for 6% of Thailand's domestic gas supply.
"PTTEP is pleased to further expand our operations in the MTJDA, which is famous for its petroleum prospectivity and strategic significance to Thai energy security," said Mr. Montri Rawanchaikul, CEO of PTT Exploration and Production Public Company Limited (PTTEP). "The purchase also plays a role in propelling the company's growth. Aside from the established producing fields, Block A-18 lies over several discovered gas fields that are still to be developed in a bid to unlock their full potential.". The involvement in Block A-18 also promotes operational coordination with Block B-17-01, aiming to optimize efficiency to ensure uninterrupted and rapid energy supply to the two countries.
Additional production wells and wellhead platforms and gas construction of gas pipes will be constructed to deliver a stable and reliable supply of gas.
MTJDA is located in the south of the Gulf of Thailand. It measures approximately 7,250 square km and is a principal supplier of natural gas and condensate to Thailand and Malaysia.