Photo Credit: PTTEP
Thailand’s PTT Exploration and Production (PTTEP) has completed a $450 million acquisition, gaining full control of an offshore oil block in the Gulf of Thailand through a deal with Chevron’s units. The transaction pertains to Block A-18 within the Malaysia–Thailand Joint Development Area (MTJDA). The deal was finalized with Hess (Bahamas) and Hess Asia Holdings, both now owned by Chevron following their recent merger with Hess Corp., according to PTTEP’s statement.
This acquisition grants PTTEP complete ownership of Hess International Oil Corp., which previously held a 50% participating interest in Block A-18. The move marks a significant step in PTTEP’s expansion efforts in offshore exploration.
Chevron is undergoing a global restructuring to streamline its operations and cut costs, which may include laying off up to 20% of its workforce by the end of next year. Additionally, Reuters reported in June that Chevron is looking to sell its 50% stake in its Singapore refinery.
PTTEP highlighted that the natural gas extracted from Block A-18 is crucial for power generation in southern Thailand. The block produces approximately 600 million standard cubic feet of gas daily, with an equal share allocated to Thailand and Malaysia.
Chief Executive Officer Montri Rawanchaikul expressed enthusiasm about expanding PTTEP’s presence in the Malaysia–Thailand Joint Development Area (MTJDA), citing its significant petroleum potential and importance to Thailand’s energy security.
The MTJDA spans 7,250 square kilometers in the southern Gulf of Thailand and serves as a vital source of natural gas and condensate for both Thailand and Malaysia, according to PTTEP.