Petronas, Thailand's PTT secure approvals for new gas block sharing contract

Sept 14 : Malaysian state energy firm Petronas said on Monday its unit and subsidiaries of Thailand's PTT had secured government approvals for a new production-sharing contract (PSC) covering a major gas-producing block in their joint development area.

The approval comes as Asian gas buyers seek greater supply certainty due to Middle East-driven disruptions to global energy markets.

PC JDA, a unit of Petronas's exploration arm PETRONAS Carigali, PTT subsidiary PTTEP JDX and the Malaysia-Thailand Joint Authority signed agreements to establish a new contractual framework for Block A-18-01, according to a statement from Petronas. 

The new PSC extends development of the existing Block A-18 beyond the current contract's expiry on April 20, 2029 and incorporates an adjacent exploration area with additional resource potential.  

Spanning approximately 7,250 sq km, the Malaysia-Thailand Joint Development Area (MTJDA) comprises several gas fields that have a combined natural gas production capacity of approximately 700 million standard cubic feet per day, with equal distribution to Malaysia and Thailand.

The parties also signed a Gas Sales Agreement with their parent companies, Petronas and PTT, to support continued gas supplies from the block to both countries, Petronas added. 

"As a key source of natural gas and condensate for both countries, this milestone reinforces our shared commitment to maximise value through enhanced resource monetisation and operational synergies," Ainoor Abizzurin B Abdullah, director of PC JDA, said. 

Malaysia Economy Minister Akmal Nasir said in a statement that the progress achieved through Block A-18-01 provides a strong foundation for the continued development of the MTJDA.

"The momentum created today should pave the way for the next phase of developing new PSC and GSA for Block B-17-01, as we continue to unlock the full potential of MTJDA for the benefit of both nations," he said. 

The new PSC took effect on January 1, 2026, and has a 35-year term covering both the existing Block A-18 area and the newly added exploration area.