Gulf of Thailand: PTTEP signs farm-in agreement with Valeura, acquires Chevron interest
PTTEP signed a Sale and Purchase Agreement (SPA) to buy 100% of the outstanding shares of Chevron, which holds a 50% participating interest in Block A-18 of the Malaysia–Thailand Joint Development Area (MTJDA). The base consideration was USD 450 million, subject to normal purchase price adjustments. This transaction increases the company’s investment in the MTJDA from the existing 50% participating interest in Block B-17-01.
Block A-18 currently produces 600 million standard cu ft of natural gas per day and started production in 2005. Block B-17-01 began production in 2010 and produces approximately 300 million standard cu ft of natural gas for Thailand and Malaysia.
In addition, Valeura entered into a Farm-in Agreement with PTTEP to earn a 40% interest in Blocks G1/65 and G3/65 in the offshore Gulf of Thailand. The parties have agreed to a work program for 2025 that includes drilling four exploration wells (all recently completed) and acquiring just over 1,200 sq km of new 3D seismic data.
The production sharing agreements provide for a six-year exploration period, during which a total of eight wells must be drilled (five on G1/65 and three on G3/65), and 800 sq km of 3D seismic must be acquired before the end of the exploration period in May 2029. A three-year extension to the exploration period may be provided thereafter. Fields developed under the PSC regime are given a 20-year production period, with a potential 10-year extension thereafter.
Block G1/65 includes eight oil and gas discoveries, supported by 12 wells which encountered oil and gas pay, as well as several undrilled prospective trends. PTTEP and Valeura have high-graded two focus areas on Block G1/65 that will guide their initial work program.
Block G3/65 is approximately 200 km long covering the northwest flank of the North Malay basin, and has seven identified oil and gas discoveries, supported by 15 wells with oil and gas pay. Two key focus areas have been identified on Block G3/65 that will guide the initial work program.
