- PTTEP acquired 50% interest in Block A-18 in the South China Sea.
- Block A-18 includes several gas fields and currently produces 600 MMscfd.
PTTEP acquired 50% participating interest in Block A-18 of the Malaysia–Thailand Joint Development Area (MTJDA) in the Gulf of Thailand.
PTTEP signed a sale and purchase agreement (SPA) to buy 100% of the outstanding shares of Hess International Oil Corp., which, through its subsidiaries, holds a 50% participating interest in Block A-18.
The base consideration was $450 million, subject to normal purchase price adjustments. Both sellers, Hess (Bahamas) Ltd. and Hess Asia Holdings Inc., are wholly owned subsidiaries of Chevron following the Chevron and Hess merger (OGJ Online, July 18, 2025).
Block A-18 lies in the lower part of the Gulf of Thailand about 150 km northeast to Kota Bharu and 160 km east of Narathiwat in about 60 m of water. The field has 12 wellhead platforms, a central processing platform and living quarters, riser platform, and two floating storage and offloading vessels.
The block includes several discovered gas fields and currently produces 600 MMscfd, equally distributed to Thailand and Malaysia. The 300 MMscfd supplied to Thailand covers 6% of its domestic gas demand.
Related
In 2023, when Chevron announced its plan to acquire Hess, the company noted an overall plan to divest $10-15 billion in assets through 2028.
For more on the deal between Chevron and Hess and what acquisition activity may still come this year, listen in to ICYMI: Chevron closes Hess deal, what's next for 2025 upstream M&A?, a July episode of the Oil & Gas Journal ReEnterprised podcast.
About the Author
Alex Procyk
Upstream Editor
Alex Procyk is Upstream Editor at Oil & Gas Journal. He has also served as a principal technical professional at Halliburton and as a completion engineer at ConocoPhillips. He holds a BS in chemistry (1987) from Kent State University and a PhD in chemistry (1992) from Carnegie Mellon University. He is a member of the Society of Petroleum Engineers (SPE).