PTT Exploration & Production PCL (PTTEP) has won two exploration blocks in Malaysia while acquiring Murphy Oil Corp.’s properties in the country.
PTTEP together with Petronas Carigali Sdn. Bhd. signed production-sharing contracts with Petronas for exploration and production rights of two offshore blocks, PM407 and PM415, in shallow waters off Peninsular Malaysia under the Malaysia 2018 bidding round.
PTTEP will operate the blocks with 55% interest in Block PM407 and 70% in Block PM415. The companies will conduct 3D seismic surveys and drill two exploration wells on each block.
With the agreement to acquire Murphy’s business in Malaysia, PTTEP adds five oil and gas projects in shallow and deep water off Sarawak and Sabah (OGJ Online, Mar. 21, 2019).
PTTEP becomes operator of the Sabah K project and the SK309 and SK311 project. In the production phase, the projects hold gross production volume of 100,000 boe/d. In the development phase, the Sabah H project is expected to begin gas production in second-half 2020, supplying 270 MMcfd to Petronas’ Floating Liquefied Natural Gas 2 project. Gross production volumes under PTTEP’s operation of the three projects combined are expected at 140,000 boe/d in the next 4 years. The SK314A project and the SK405B project are undergoing exploration campaigns.
Expected to strengthen PTTEP’s growth in both the short and long term, said Phongsthorn Thavisin, PTTEP president and chief executive officer, the acquisition of Murphy’s assets is expected to “boost up net sales volume around 48,000 boe/d immediately.”
Elsewhere in Malaysia, PTTEP is assessing the resource potential of the Sarawak SK410B natural gas project and making drilling preparations for an exploration well, while evaluating the potential of the Sarawak SK417 gas and crude oil project and making drilling preparations for two exploration wells on the Sarawak SK438 gas and condensate project. PTTEP also has producing projects in Blocks B-17 and B-17-01 offshore Gulf of Thailand in a joint development area which includes Muda, Jengka, Tapi, Melati, and Amarit fields; and jointly invests with PTT in the MLNG Train 9 Project, an LNG liquefaction plant with current capacity of 3.6 million tonnes/year, through PTT Global LNG Co.