Thailand's PTTEP buys full control of offshore gas block
The deal for Block A-18 in the Malaysia–Thailand Joint Development Area (MTJDA) was signed with Hess (Bahamas) and Hess Asia Holdings, both now owned by Chevron following a recent merger with Hess Corp, PTTEP said in a statement.
The acquisition gives PTTEP 100% of the outstanding shares in Hess International Oil Corp, which holds a 50% participating interest in Block A-18, the exploration arm of PTT Plc said.
The deal comes as Chevron restructures globally to streamline operations and reduce costs, a process that could involve laying off 20% of its workforce by the end of next year. Chevron is also seeking buyers for its 50% stake in its Singapore refinery, Reuters reported in June.
PTTEP said natural gas from Block A-18 is fundamental to power generation for southern Thailand. The block produces about 600 million standard cubic feet of gas per day, which is equally distributed to Thailand and Malaysia.
'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,' chief executive officer Montri Rawanchaikul said in the statement.
The MTJDA covers 7,250 square kilometres in the southern part of the Gulf of Thailand and is a key source of natural gas and condensate for Thailand and Malaysia, according to the statement.
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Thailand's PTTEP buys full control of offshore gas block
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