Petronas and PTT units receive approval for new gas contract in Malaysia-Thailand area
Units of Malaysian state energy company Petronas and Thailand's PTT have received approval from both countries' governments for a new production-sharing agreement for a major gas-producing block in the Malaysia-Thailand Joint Development Area. This was reported by Channel NewsAsia, citing Reuters.
New terms for Block A-18-01
Agreements on the new contract model for Block A-18-01 were signed by PC JDA, a unit of PETRONAS Carigali's exploration business, PTTEP JDX, a subsidiary of PTT, and the Malaysia-Thailand Joint Authority.
The new production-sharing contract continues the development of the existing A-18 block after the current agreement expires on April 20, 2029. It also covers an adjacent exploration area with additional resource potential. The new contract has a term of 35 years and begins on January 1, 2026.
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Gas supplies
The parties also signed a gas sales agreement with their parent companies, Petronas and PTT. According to Petronas, it is intended to support continued gas supplies from the block to Malaysia and Thailand.
The Malaysia-Thailand Joint Development Area covers approximately 7,250 square kilometres. It includes several gas fields with a combined production capacity of around 700 million standard cubic feet of natural gas per day, which is divided equally between the two countries.
PC JDA Director Ainoor Abizzurin B Abdullah said the arrangement confirms the parties' intention to maximize the value of the resources through more efficient monetization and operational cooperation.
