Malaysia-Thailand Joint Development Area Signs 35-Year Natural Gas Contract

en.Wedoany.com Reported - On September 14, PETRONAS of Malaysia and an affiliate of PTT Public Company Limited of Thailand received approval from the governments of Malaysia and Thailand to implement a new production sharing contract in Block A-18-01 of the Malaysia-Thailand Joint Development Area. The contract has a term of 35 years, commencing on January 1, 2026, and brings the continued development of the existing Block A-18 and the adjacent new exploration area under a single contractual framework.

The contract was signed by PC JDA, a subsidiary of PETRONAS Carigali, the exploration and production arm of PETRONAS, and PTTEP JDX, a subsidiary of PTT Exploration and Production Public Company Limited, together with the Malaysia-Thailand Joint Authority. The new contract will carry on the development activities of the existing Block A-18 after the original contract expires on April 20, 2029, while adding the adjacent exploration area, providing a new contractual basis for subsequent natural gas resource exploration, reserve replacement, and development.

The parties also signed a natural gas sales agreement with PETRONAS and PTT Public Company Limited to ensure the continued supply of natural gas produced from the block to both countries. The Malaysia-Thailand Joint Development Area covers approximately 7,250 square kilometers and contains multiple gas fields, with a combined natural gas production capacity of approximately 700 million standard cubic feet per day. Production is shared equally between Malaysia and Thailand, making it an important upstream gas source for the energy supply systems of both countries, particularly the Malay Peninsula and southern Thailand.

Block A-18 is currently a core producing asset of the Malaysia-Thailand Joint Development Area. PTT Exploration and Production Public Company Limited previously acquired a 50% participating interest in the A18 project through investment and has listed the project as an important asset for safeguarding natural gas supply and power generation fuel demand in southern Thailand. This new 35-year contract further extends the block's development period while incorporating the new exploration area into the development system, creating conditions for subsequent drilling of existing mature gas fields, maintenance of production facilities, production enhancement modifications, and commercialization of new resources.