Petronas and Thailand's PTT receive approvals for a new gas block-sharing contract
Malaysian state-owned energy company Petronas announced?on Monday that its unit, along with subsidiaries of Thailand's PTT, had received government approval for a new Production-Sharing Contract (PSC), covering a major gas producing block in their joint development area.
As Asian gas buyers look for greater supply security due to disruptions in global energy markets caused by the Middle East, this approval comes as a welcome relief.
According to a Petronas statement, PC JDA, an exploration unit of Petronas, PTTEP JDX, and the Malaysia-Thailand Joint Authority have signed agreements to create a new contract framework for Block A-18-01.
The new PSC extends the development of the existing Block A-18 past the expiration date on April 20, 2020 and incorporates a nearby exploration area with additional resource potential.
The Malaysia-Thailand Joint Development Area, or MTJDA, covers approximately 7,250 square kilometers and includes several gas fields with a combined production capacity of about 700 million standard cubic feet per day.
Petronas said that the parties had also signed a Gas Sales Agreement (GSA) with their respective parent companies Petronas & PTT to ensure gas supply to both countries.
Ainoor Abdullah B Abdullah is the director of PC JDA. She said, "As both countries' primary source of natural gases and condensate, this milestone confirms our shared commitment to maximising value through enhanced resource monetization and operational synergies."
Malaysia Economy Minister 'Akmal Nasir' said in a press release that the Block?A-18-01 progress provides a solid?foundation? for the continued development MTJDA.
He said: "The momentum created by today's event should pave the?next stage of developing new PSCs and GSAs for Block B-17-01 as we continue to unlock MTJDA's full potential for both nations."
The new PSC came into effect on January 1, 2026 and will cover both the existing Block A-18 and the newly-added exploration area.
(source: Reuters)
