Petronas, PTT units secure approval for new gas contract in Malaysia-Thailand joint area

Sept 14 : Malaysian state energy firm Petronas said on Monday its unit, together with subsidiaries of Thailand's PTT have secured approvals from both governments for a new production sharing contract (PSC) for a major gas-producing block in their joint development area.

The approval comes as Asian gas buyers seek greater supply certainty amid heightened concerns over regional energy security following disruptions in global energy markets stemming from tensions in the Middle East.

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, the statement said. 

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 square kilometres, the Malaysia-Thailand Joint Development Area 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. 

The new PSC has a 35-year tenure beginning January 1, 2026, and covers both the existing Block A-18 area and the newly added exploration area.