PTT Exploration and Production Public Company Limited (PTTEP), Thailand’s national oil and gas player, has made a play for a stake, which Hess Corporation, now part of Chevron, holds in a block that is part of a natural gas and condensate production project between Malaysia and Thailand.
This sale and purchase agreement (SPA) enables PTTEP to obtain the 50% interest, which Hess (Bahamas) and Hess Asia Holdings, wholly owned subsidiaries of Chevron in the aftermath of the Hess merger , hold in Block A-18 , which is part of the Malaysia–Thailand Joint Development Area (MTJDA) , and the outstanding shares of the operator of this block. The base consideration was $450 million, subject to normal purchase price adjustments.
This natural gas and condensate production project currently produces approximately 600 million standard cubic feet of natural gas per day (mmscfd), which is equally delivered to both Thailand and Malaysia to address the energy demands of both countries. The completion of this transaction occurred on July 25, 2025.
With this acquisition in mind, PTTEP Joint Development SG, wholly owned by PTTEP Joint Development Company, a subsidiary of PTTEP, was established five days ago, with registered capital of $50,000, divided into 50,000 ordinary shares with a value of $1 each.
“This acquisition aligns with PTTEP’s strategy to enhance energy security and strengthen the company’s long-term growth. MTJDA is located in the southern part of the Gulf of Thailand and serves as a key source of natural gas and condensate for both Thailand and Malaysia,” highlighted PTTEP.
The Malaysia–Thailand Joint Development Area consists of blocks A-18 and B-17-01, where PTTEP currently holds a 50% stake. Block B-17-01 produces approximately 300 mmscfd of natural gas, which is supplied to Thailand and Malaysia.
This comes on the heels of the Thai player’s deal with Valeura Energy, which allows the latter to join the former in two blocks off the coast of Thailand.