National oil and gas conglomerate PTT Plc has joined hands with the Russian national oil and gas firm, Gazprom Neft, to cooperate on exploration and production (E&P) of petroleum resources in Russia and other countries.
PTT president and chief executive Tevin Vongvanich said Gazprom Neft and PTT have signed a memorandum of understanding (MoU) aiming to promote mutually beneficial cooperation among the two companies.
The MoU was signed last week during Russia Energy Week 2017 in Moscow by Alexander Dyukov, chief executive of Gazprom Neft, and Mr Tevin.
It covers potential collaboration in hydrocarbon E&P in Russia and other countries, the development and production of fluid catalytic cracking and hydrotreatment catalysts, and aviation fuel supply.
The companies will also consider scientific collaboration on industrial safety.
Mr Tevin declined to name specific regions the cooperation will cover for investment in E&P petroleum resources.
He said the MoU has also created a platform to facilitate financial transactions and trades between the two firms in the coming years.
A number of governments have sanctions against individuals, businesses and officials from Russia and Ukraine, approved by the US and the EU among other countries, and international organisations.
Russia has responded with sanctions against a number of countries, including a total ban on food imports from the EU, US, Norway, Canada and Australia.
This MoU should help facilitate trade and investment between the two firms amid the sanctions, said Mr Tevin.
He said the first step for the agreement is to purchase catalytic substances for the oil refinery process. Other products such as liquefied natural gas (LNG) and crude oil may be purchased later.
PTT is seeking oil and gas resources in the global market to secure energy supply. It has a long-term purchase agreement for LNG on hand at a total of 7.8 million tonnes per year, while PTT's receiving terminal in Rayong has full capacity of 10 million tonnes.
In another development, the Thai energy policymaker said the deregulation of the solar rooftop programme will be implemented within this year.
Energy Minister Anantaporn Kanjanarat said the total power generated from solar rooftops allowed to be sold to state utilities should be around 300 megawatts.