PTTEP Buys Offshore Block in Southeast Asia from Chevron's Hess Unit for $450 Million

Thailand’s state-owned oil and gas exploration company, PTT Exploration and Production Public Company Limited (PTTEP), has successfully acquired full ownership of Block A-18 located in the Malaysia–Thailand Joint Development Area (MTJDA). The $450 million transaction was finalized on July 25 and was facilitated through PTTEP Joint Development SG, a newly created subsidiary based in Singapore. This strategic acquisition was executed by purchasing all outstanding shares of Hess International Oil Corporation from Hess (Bahamas) Ltd. and Hess Asia Holdings Ltd., both of which are now owned by Chevron Corporation following its recent acquisition of Hess Corporation.

As a result of the deal, PTTEP now holds a 50% participating interest in Block A-18, as well as a 50% ownership stake in the operating company responsible for managing the block's production. The remaining 50% in Block A-18 is held by Petroliam Nasional Berhad (Petronas), Malaysia's national oil and gas company. The agreed base consideration for the acquisition is $450 million, which remains subject to customary closing adjustments based on factors like working capital, debt, and performance metrics.

Block A-18, located in the resource-rich southern Gulf of Thailand, is a vital contributor to regional energy supplies, producing approximately 600 million standard cubic feet of Natural Gas per day (MMSCFD). The output is equally split between Thailand and Malaysia, reflecting the spirit of bilateral cooperation that governs the MTJDA. The Joint Development Area, jointly administered by the two governments, also encompasses Block B-17-01, in which PTTEP already holds a 50% operating interest. That block contributes an additional 300 MMSCFD to the energy supply, reinforcing PTTEP's strong position in the region.

Commenting on the development, Montri Rawanchaikul, Chief Executive Officer of PTTEP, highlighted the strategic significance of the acquisition. “This move strengthens PTTEP’s presence in the MTJDA and supports our long-term vision of ensuring energy security for the region. By consolidating our interests, we are enhancing our ability to manage resources efficiently while reinforcing our commitment to sustainable energy development,” he said.

The acquisition aligns with PTTEP’s broader strategic goals of expanding its energy portfolio across Southeast Asia and maintaining a reliable supply of natural gas—a crucial fuel for the region's energy mix and economic development. As regional energy demands continue to rise, PTTEP’s strengthened role in the MTJDA places the company in a favorable position to address future supply challenges while maximizing shareholder value.

This acquisition not only boosts PTTEP’s reserves and production capacity but also consolidates its leadership role in one of Southeast Asia's most critical Hydrocarbon production zones.