Petronas and PTT Secure 35-Year Gas Production Contract
Petronas and PTT secured a 35-year production-sharing contract for Block A-18-01 to ensure continued natural gas supplies for Malaysia and Thailand.
Subsidiaries of Petroliam Nasional Berhad (Petronas) and PTT Public Company Limited secured government approvals for a new 35-year production-sharing contract (PSC) for Block A-18-01 within the Malaysia-Thailand Joint Development Area (MTJDA). The agreement, which took effect on January 1, 2026, integrates the existing Block A-18 with an adjacent exploration area to sustain production beyond the original contract's April 2029 expiry.
To guarantee energy security, PC JDA Ltd and PTTEP JDX Thailand signed a Gas Sales Agreement on September 14, 2026, with their respective parent companies. The MTJDA covers approximately 7,250 square kilometers and produces 700 million standard cubic feet of natural gas per day, split equally between the two nations. This arrangement aims to provide supply certainty for Asian buyers amid market disruptions caused by instability in the Middle East.
PC JDA Director Ainoor Abizzurin B Abdullah described the agreement as a milestone for resource monetization and operational synergies. Malaysia Economy Minister Akmal Nasir stated that the progress establishes a foundation for the next phase of development, specifically regarding new contracts for Block B-17-01.
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