Petronas, Thailand's PTT secure approvals for new gas block sharing contract
The approval comes as Asian gas buyers seek greater supply certainty due to Middle East-driven disruptions
Petronas, Malaysia's state energy firm, and its Thailand-based subsidiary PTT have secured government approvals for a new production-sharing contract (PSC) covering a significant gas-producing block in their joint development area. The approval was announced on September 14, 2023, amid heightened demand for stable gas supplies due to disruptions in the Middle East energy markets.
The new PSC, signed by PC JDA, a PETRONAS Carigali exploration unit, PTT's PTTEP JDX subsidiary, and the Malaysia-Thailand Joint Authority, establishes a contractual framework for Block A-18-01. This extension of development beyond the current contract's expiration in April 2029 incorporates an adjacent exploration area with additional resource potential.
The MTJDA, spanning approximately 7,250 sq km, comprises several gas fields with a combined natural gas production capacity of around 700 million standard cubic feet per day, equally distributed between Malaysia and Thailand. Ainoor Abizzurin B Abdullah, PC JDA director, highlighted the milestone as a testament to their commitment to maximising value through enhanced resource monetisation and operational synergies.
Malaysia's Economy Minister Akmal Nasir noted that the progress in Block A-18-01 sets a strong foundation for the development of a new PSC and GSA for Block B-17-01, unlocking the full potential of the MTJDA for mutual benefit. The new PSC commenced on January 1, 2026, and extends for a 35-year term, covering both the existing Block A-18 area and the newly added exploration region.
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