PTT Exploration and Production Plc (PTTEP) continues to expand its reach as it seeks new sources of petroleum in Malaysia in cooperation with two Malaysian firms.
The exploration arm of the energy conglomerate PTT Plc has formed a joint venture with the Malaysian state oil and gas group Petronas and Petroleum Sarawak Exploration & Production Sdn (PSEP) to start offshore exploration in petroleum block SK325, located off the coast of Sarawak, a Malaysian state in northern Borneo.
Initial studies of subsurface data from the site covering 3,602 square kilometres indicated oil and gas potential, the companies said.
“We are delighted to join [Petronas] and PSEP in this promising exploration opportunity,” said Montri Rawanchaikul, chief executive of PTTEP.
“The investment not only demonstrates PTTEP’s commitment to driving growth in strategic focus areas, but also strengthens our partnership with Petronas and PSEP.”
PTTEP, through its wholly owned subsidiary PTTEP Sarawak Oil, holds a 32.5% share in the joint venture, with 60% share belonging to Petronas, the operator of the project, and 7.5% held by PSEP.
The partners plan to conduct a 3D seismic survey and other technical studies this year and next to assess the potential for petroleum production.
Successful petroleum discoveries have been made in surrounding blocks, including the PTTEP-operated SK309 and SK311.
PTTEP earlier signed a production-sharing contract with Petronas for offshore exploration in block SK325 in 2022.
PTTEP has not disclosed its exploration expenses for the SK325 project. The money is to be allocated under its five-year investment budget worth US$29.1 billion, scheduled for use between 2023 and 2027.
