PTTEP move strengthens investment in Malaysia

PTTEP move strengthens investment in Malaysia

PTT Exploration and Production Plc (PTTEP) has started its natural gas production at Rotan and Buluh deepwater fields of Block H off the coast of Sabah, Malaysia, marking its move to strengthen investment in Malaysia.

The production will increase the company's petroleum supply and sales volume in the neighbouring country.

The first gas production in Block H came after its wholly-owned subsidiary PTTEP HK Offshore Co successfully completed the Lang Lebah-2 appraisal well in the Sarawak SK 410B Project. The drilling result registered a new record for PTTEP's largest gas discovery.

PTTEP operates exploration and production (E&P) business in Block H through PTTEP Sabah Oil Co, which operates natural gas production at Rotan and Buluh fields and has delivered it to floating liquefied natural gas (LNG) 2 facility, owned by Malaysian oil and gas company Petronas, two weeks ago, said PTTEP chief executive Phongsthorn Thavisin.

This project targets production capacity of 270 million standard cubic feet per day.

"Gas production at Block H will increase LNG production capacity and strengthen PTTEP's investment portfolio in Malaysia," said Mr Phongsthorn, adding it also reflects a strong collaboration between PTTEP and joint-venture partners in bringing together expertise and technologies to reach this milestone. Its partners are Petronas Carigali Sdn Bhd and PT Pertamina Malaysia Eksplorasi Produksi.

PTTEP Sabah Oil Co owns a 56% equity in the Rotan field and a 42% equity in the remaining area.

Apart from Block H, PTTEP's portfolio in Malaysia comprises Block K, SK 309 and SK 311, and the Malaysia–Thailand Joint Development Area (MTJDA). All have started production.

Other areas -- SK 417, SK 314A, SK 438, SK 405B, SK 410B, PM 407 and PM 415 -- are in the exploration stage.

PTTEP also invested through PTT Global LNG Co, which holds a 10% equity in LNG Train 9, a production facility owned by Petronas, part of the larger Malaysia LNG complex in Bintulu.

Gas production from Block H is part of capital spending, worth US$23.6 billion, allocated for five years from 2021 to 2025.

In the first two years, part of the money will go to the operation of two gas blocks in Thailand -- G1/61 (Erawan) and G2/61 (Bongkot) -- and support gas production of 270 million standard cubic feet per day at Malaysia's Sabah Block H as well as the first-phase crude oil production development project at Algeria's on-shore Hassi Bir Rekaiz.

In 2023-24, PTTEP plans to spend the budget for LNG production facility at Mozambique's Rovuma Area 1 and Malaysia's Sarawak SK 410B as well as further expansion of its new business in robotics and artificial intelligence.

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