This follows the completion of the negotiation and contract signing between Petronas’ subsidiary Pc Jda and the Malaysia-Thailand Joint Authority (MTJA).
The Malaysian and Thai governments have granted approval to annex Blocks B-17 and C-19 production sharing contracts (PSC), and Block B-17-02 (Open Area) into Block B-17-01 PSC.
The PSC areas are located within the Malaysia-Thailand Joint Development Area (MTJDA), which is the Malaysia-Thailand offshore overlapping area administered by the MTJA.
According to the annexation deal, Block B-17-01 PSC will have a ten-year production period extension until 2039.
Petronas Carigali and MTJA also agreed on additional gas volumes as part of an amended gas sales agreement.
Under this deal, gas from the PSC areas will be delivered to Peninsular Malaysia and Thailand.
PC JDA director Nurunnajwa Mohd Aras said: “The annexation of the PSCs is an important milestone as the additional gas supply is crucial to both nations’ energy security and economic prosperity. It also further strengthens our presence in Malaysia-Thailand Joint Development Area (MTJDA), which is a key natural gas supplier for both countries.”
The latest move comes days after Bloomberg News reported that Petronas was looking to sell upstream assets in Africa to raise as much as $3bn.
The firm is also exploring options for its downstream assets in Africa.