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Thailand’s state-owned upstream oil and gas company PTTEP and Malaysia’s national energy company Petronas have signed multi-year production-sharing and gas sales agreements for an offshore development in the Malaysia-Thailand Joint Development Area (MTJA), strengthening the two countries’ long-term energy security and securing gas supplies for both markets.
PTTEP’s subsidiaries, PTTEP JDX Thailand (JDA) and PTTEP JDX Thailand Ltd. Co., and PC JDA, a subsidiary of Petronas Carigali, have entered into a production sharing contract (PSC) with the Malaysia-Thailand Joint Authority (MTJA) for Block A-18-01 .
As a result, Petronas and PTTEP will each hold a 50% participating interest in the asset and continue exploration, development, and production of petroleum in the Malaysia-Thailand joint development area.
The Thai player, together with MTJA and PC JDA, entered into a gas sales agreement (GSA) for Block A-18-01 with gas buyers, PTT Public Company and Petroliam Nasional Berhad (Petronas).
Both the PSC and the GSA have a term of 35 years, effective from January 1, 2026. The production sharing contract for Block A-18-01 covers both the original area of Block A-18 and an additional area.
The block has a natural gas production capacity of approximately 300-400 million standard cubic feet per day, with the natural gas supplied equally to Thailand and Malaysia.
The gas supplied to Thailand accounts for around 4% of the country’s natural gas demand and is primarily used for power generation in southern Thailand. Block A-18-01 is situated in the southern part of the Gulf of Thailand.
Covering an area of approximately 3,494 square kilometers, the block is described as an important source of natural gas and condensate for both countries.
The project is strategically important in supporting natural gas demand and strengthening the long-term energy security of both nations.