PTTEP Signs PSC for Block B-17-01 in the MTJDA
PTTEP and Petronas on September 30, 2004 signed the Production Sharing Contract (PSC) of Block B-17-01 with Malaysia-Thailand Joint Authority (MTJA). The signing ceremony was held in Kuala Lumpur, Malaysia.
Block B-17-01 is in the Malaysia-Thailand Joint Development Area (MTJDA), south of the Gulf of Thailand. It covers an area of about 3,475 square kilometers.
PTTEPI is a wholly owned subsidiary of PTT Exploration and Production Public Company Limited (PTTEP), while PC JDA Limited is an affiliate of PETRONAS of Malaysia.
PTTEP President Mr. Maroot Mrigadat sees the contract signing as a good step forward for the company. "The Production Sharing Contract will enhance the value of petroleum exploration projects in the Gulf of Thailand and the MTJDA through synergy for optimum operational efficiency", he said.
The Thai Cabinet on September 21, 2004 and the Malaysian Cabinet on September 29, 2004 gave the permission for MTJA to award the PSC of Block B-17-01 to PTTEPI and PC JDA Limited. Each party will have a participation interest of 50%. The contract will oblige the companies to invest at least about 6 million US Dollars in the first 5 years in geological and geophysical studies, seismic surveys, and the drilling of at least two exploration wells.
Earlier, in 1994, both companies signed Production Sharing Contracts for Blocks B-17 and C-19 in the Malaysia-Thailand Joint Development Area, followed by the signing of Heads of Agreement (HOA) in 1998. Both companies formed Carigali-PTTEPI Operating Company Sdn. Bhd. (CPOC) to conduct exploration and production work in these blocks and petroleum has been found in nine fields.
The relinquished area within Blocks A-18, B-17 and C-19 in the Malaysia-Thailand Joint Development Area (MTJDA) are now collectively called Block B-17-01. MTJA decided to give the national oil companies of both countries the first priority in negotiating for the new block. All parties have eventually reached an agreement for the PSC today.
Company: PTTEP more info
Company: PETRONAS more info
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