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.
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.
