PTTEP subsidiary wins bid to explore for oil, gas in new block off Malaysia
A subsidiary of PTT Exploration and Production has won a bid to survey for oil and gas in a new block in the sea off Malaysia and produce petroleum, PTTEP said on Wednesday.
PTTEP’s chief executive officer, Montri Rawanchaikul, said the company’s subsidiary, PTTEP HK Offshore Ltd, and its Malaysian partner, SapuraOMV Upstream, have signed a production-sharing contract with Petronas. The joint venture was awarded the right to survey in Block SB412, northwest of Sabah state, and produce petroleum subsequently.
Montri said the joint venture won the Malaysia Bid Round 2021 to win the right to carry out the survey and refining and now PTTEP has 12 survey and refining contracts in Malaysia.
Block SB412 has an area of 15,914 square kilometres. Montri said the initial geological study showed that the plot has high crude oil potential and crude has been found in nearby blocks.
Montri added that the nearby area has the infrastructure to support an oil refinery.
He said PTTEP HK Offshore will be the operator under the contract and it holds a 60 per cent stake in the joint venture, while SapuraOMV holds 40 per cent.
Other oil survey blocks in Malaysia which PTTEP has won the right to survey and for refining include SK405B, SK410B, SK348, and PM407.
Montri said the investments in Malaysia are being carried out under the “Coming Home” strategy, under which PTTEP will shift its focus to carry out more investments in Southeast Asia.