Exploration in Malaysia to be expanded
PTTEP now has 12 deals in the country
published : 24 Mar 2022 at 04:00
newspaper section: Business
writer: Yuthana Praiwan
PTT Exploration and Production Plc (PTTEP) is preparing to explore a new offshore oil block in Malaysia under its "Coming Home Strategy" to focus more on new investments in Southeast Asia.
Malaysian national oil and gas conglomerate Petronas awarded the exploration rights at Block SB412, located off the northwestern coast of Sabah, to PTTEP through its subsidiary PTTEP HKO and its partner SapuraOMV.
PTTEP HKO and SapuraOMV recently signed a production sharing contract (PSC) with Petronas.
Under the Block SB412 PSC, PTTEP HKO will be the operator, with a 60% interest, while SapuraOMV holds the remaining interest.
"We are delighted to expand our growth in Malaysia through this new PSC. The investment follows through with our Coming Home Strategy which earmarks investments for Southeast Asia," said Montri Rawanchaikul, chief executive of PTTEP.
The move is aligned with PTTEP's investment strategy to drive growth in strategic focus areas and reinforces the company's presence in Malaysia.
It also marks another collaboration with Petronas and brings the number of PSCs in Malaysia to 12.
The company has so far invested in petroleum projects in many regions, including the Middle East.
Block SB412 covers a large area of approximately 15,914 sq km. The studies of subsurface data indicate petroleum potential with surrounding blocks having reported discoveries.
The area is also well-equipped with infrastructure and facilities ready for petroleum development.
Under the exploration plan, PTTEP HKO and SapuraOMV will initially carry out 3D seismic surveys and other technical studies during 2022-2023 to assess the petroleum potential.
Apart from Block SB412, PTTEP's portfolio in Malaysia comprises exploration blocks SK405B, SK410B, SK417, SK438, SK314A, PM407 and PM415, and producing blocks K, SK309 and SK311, and Block H of the Rotan-Buluh field.
In another development, national oil and gas conglomerate PTT Plc yesterday decided to expand its 100-baht discount for liquefied petroleum gas (LPG) for another three months to relieve the financial burden of street food vendors, who use LPG as cooking gas.
The discount, which is given though the social welfare card scheme, is scheduled to expire at the end of this month.
PTT earlier agreed to cap compressed natural gas prices at 15.59 baht per kilogramme for transport operators and 13.62 baht per kg for registered taxi drivers until June 15.
The capped and discounted prices will cost PTT more than 3.3 billion baht.