PTT Exploration and Production Plc (PTTEP) continues to increase its oil and gas production through the exploration of a new source of petroleum in Malaysia in cooperation with two Malaysian firms.
Montri Rawanchaikul, chief executive of PTTEP, said the company formed a joint venture with Malaysian oil and gas conglomerate Petronas Carigali Sdn Bhd (PCSB) and Petroleum Sarawak Exploration & Production Sdn (PSEP) to start offshore exploration at petroleum block SK325, located off the coast of Sarawak, a Malaysian state in northern Borneo.
Initial studies of subsurface data from the site indicated oil and gas potential.
"We are delighted to join PCSB and PSEP in this promising exploration opportunity," said Mr Montri. "The investment not only demonstrates PTTEP's commitment to driving growth in strategic focus areas, but also strengthens our partnership with PCSB and PSEP."
PTTEP, through its wholly-owned subsidiary PTTEP Sarawak Oil, holds a 32.5% share in the joint venture, with a 60% share belonging to PCSB, the operator of the project, and a 7.5% share held by PSEP.
Mr Montri said he believes the expertise of the three companies would lead to success for exploration at SK325, which covers 3,602 square kilometres.
The venture plans to conduct a 3D seismic survey and other technical studies this year and next to assess the potential for petroleum production.
Successful petroleum discoveries were made at surrounding blocks, including the PTTEP-operated blocks SK309 and SK311.
PTTEP earlier signed a production-sharing contract with Petronas for offshore exploration at SK325, which was offered under the Malaysia Bid Round (MBR) in 2022. MBR is organised annually by Malaysia Petroleum Management to grant licences to petroleum operators.
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.