Malaysia’s national upstream company Petronas Carigali has wrapped up negotiations with Malaysia-Thailand Joint Authority (MTJA)that see acreages rejigged and the company commit to delivering increased volumes of gas to both Asean neighbours.
Petronas and the MTJA have reached an agreement and have received the relevant approvals from the Malaysian and Thai governments to annex the Block B-17 and Block C-19 production sharing contracts and Block B-17-02 (Open Area) into the Block B-17-01 PSC.
Block B-17-01 PSC comes with a 10-year production period extension until 2039, under the terms of the annexation agreement.
Petronas Carigali and MTJA have also committed to additional gas volumes under an amended gas sales agreement that governs the sale and delivery of gas from the PSC areas to Peninsular Malaysia and Thailand.
Petronas Carigali is partnered with Thai counterpart PTTEP in these Malaysia-Thailand joint development area (MTJDA) PSC upstream operations. The PSC areas are located within the MTJDA, which is the Malaysia-Thailand offshore overlapping area that measures approximately 7250 square kilometres and which is administered by the MTJA.
“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 MTJDA, which is a key natural gas supplier for both countries,” said Nurunnajwa Mohd Aras, director of subsidiary Petronas Carigali JDA.