Thailand’s state-backed energy firm PTT Exploration and Production (PTTEP) has acquired 50% of Block A-18 in the Malaysia–Thailand Joint Development Area (MTJDA) through a $450 million deal with Chevron's subsidiaries.
The transaction, completed on July 25, was executed through PTTEP Joint Development SG, a newly established Singapore-based subsidiary of PTTEP.
The company signed a sale and purchase agreement with Hess (Bahamas) and Hess Asia Holdings, both now owned by Chevron following its recent merger with Hess Corporation.
The deal grants PTTEP 100% of the outstanding shares of Hess International Oil Corporation, which holds a 50% participating interest in Block A-18 and a 50% stake in the operating company for the block. The base consideration is $450 million, subject to standard closing adjustments.
Block A-18 is a key natural gas and condensate production area in the southern Gulf of Thailand, producing approximately 600 million standard cubic feet of gas per day (MMSCFD), with output equally distributed to Thailand and Malaysia to meet bilateral energy needs. The MTJDA is jointly managed by the two countries and also includes Block B-17-01, where PTTEP already holds a 50% interest and produces an additional 300 MMSCFD.
“This acquisition reinforces PTTEP’s strategy to enhance regional energy security and strengthen our long-term growth outlook,” said Montri Rawanchaikul, PTTEP’s Chief Executive Officer.