PTT Exploration and Production Public Company (PTTEP) has signed a long-term agreement with its partners for the continued operation and supply of natural gas from a major offshore block in the Malaysia-Thailand Joint Development Area (MTJDA).
The new production sharing contract (PSC) and gas sales agreement (GSA) for Block A-18-01 were formalised by PTTEP’s subsidiaries, PTTEP JDX Thailand (JDA) and PTTEP JDX Thailand, alongside PC JDA, a subsidiary of Petronas Carigali.
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The Malaysia-Thailand Joint Authority (MTJA) serves as the regulator for the cross-border block.
Under the terms of both agreements, which come into effect on 1 January 2026 and will remain in force for 35 years, PTTEP and PC JDA will each hold a 50% participating interest in Block A-18-01.
The block encompasses both the original area of Block A-18 and an expanded zone, together covering a total of around 3,494km² in the southern Gulf of Thailand.
The area is jointly administered by Thailand and Malaysia under the MTJDA framework.
At the same time, the same subsidiaries, along with the Malaysia-Thailand Joint Authority, have entered into a gas sales agreement with buyers PTT Public Company and Petroliam Nasional Berhad (Petronas), also effective for 35 years from 2026.
Located in the southern part of the Gulf of Thailand, Block A-18-01 has a reported natural gas production capacity of roughly 300-400 million standard cubic feet per day.
Supplies from Block A-18-01 are to be divided equally between Thailand and Malaysia, with gas directed to Thailand representing about 4% of Thai natural gas consumption and serving mainly power generation facilities in the country’s south.
Block A-18-01 is highlighted as a significant source of natural gas and condensate for both participating countries. The stated aim of the project is to support ongoing energy demand and contribute to long-term energy stability in the region.
In July 2025, PTTEP acquired a 50% participating interest in Block A-18 of the MTJDA from Chevron for $450m.
Last month, PTTEP reported the redeployment of a decommissioned wellhead platform, describing this as Thailand’s first “Total Wellhead Platform Reuse” and highlighting outcomes such as cost optimisation and reduced emissions.
