PTTEP reports that the Cabinet has approved a Production Sharing Contract, Block B-17-01, between Malaysia-Thailand Joint Authority and PTTEP International Limited (a subsidiary of PTTEP), and PC JDA Limited (an affiliate of Petronas Carigali), as proposed by the Ministry of Energy. The participation interest will be 50% and 50% respectively. The Company expects the signing of the above mentioned contract by the end of September.

Block B-17-01 is a part of the Malaysia-Thailand Joint Development Area (JDA) and used to be an area in Blocks A-18, B-17, and C-19, in which the concessionaires have relinquished parts of the concession to the Malaysia-Thailand Joint Authority. PTTEP will have an operating obligation of approximately USD 6 million for the first 5 years, which will include the geological and geophysical studies, seismic surveys, and the drilling of 2 exploration wells.

This investment will enhance the value of petroleum exploration projects in the Gulf of Thailand and the JDA through synergy for optimum operational efficiency.