PTTEP acquires gas block stake from Chevron subsidiaries for $450 million
PTT Exploration and Production (PTTEP) has secured complete ownership of Block A-18 in the Malaysia–Thailand Joint Development Area (MTJDA) following a $450 million acquisition from Chevron subsidiaries.
The transaction, completed on Friday, saw PTTEP purchase 100% of the outstanding shares in Hess International Oil Corporation through its subsidiary PTTEP Joint Development SG PTE. Ltd. The deal was struck with Hess (Bahamas) Limited and Hess Asia Holdings Inc., both now wholly owned by Chevron following its recent merger with Hess Corp.
The acquisition grants PTTEP a 50% participating interest in Block A-18, which produces approximately 600 million standard cubic feet of natural gas daily. This production is split equally between Thailand and Malaysia, with Thailand's 300 million cubic feet representing 6% of the country's domestic gas demand.
"PTTEP is pleased to further expand our operations in the MTJDA, which is recognised for its petroleum potential and strategic significance to Thailand's energy security," said CEO Montri Rawanchaikul.
The deal comes as Chevron undergoes global restructuring to streamline operations and reduce costs, potentially affecting up to 20% of its workforce by the end of next year. Chevron is also reportedly seeking buyers for its 50% stake in its Singapore refinery.
Block A-18, which encompasses the Cakerawala, Bumi, Suriya, Bulan, and Bulan South fields, has been operational since 2005. The acquisition complements PTTEP's existing 50% interest in Block B-17-01, which began production in 2010 and generates roughly 300 million cubic feet of gas daily.
The MTJDA spans 7,250 square kilometres in the southern Gulf of Thailand and serves as a crucial source of natural gas and condensate for both nations. PTTEP plans to develop additional production wells and wellhead platforms whilst constructing gas pipelines to ensure consistent energy supply.
The transaction immediately enhances PTTEP's gas production capacity and petroleum reserves, reinforcing Thailand's energy security whilst supporting the company's growth strategy in the strategically important joint development area.
