Mohamad Ismail, head of Petronas' operations in Africa, the Middle East and Asia, said the appraisal well will be spudded later this month to gauge further the potential of the Thar Jath field.

Petronas recently paid Swedish operator Lundin Petroleum $142.5 million for its 40.37% stake in block 5A in the Muglad basin.

Ismail said Petronas was planning to produce up to 40,000 barrels of oil per day from the field, discovered in 2001.