PTTEP strengthens energy security for Thailand, acquiring Chevron's interest to expand investment in MTJDA's Block A-18

Mr. Montri Rawanchaikul, Chief Executive Officer of PTT Exploration and Production Public Company Limited (PTTEP), stated that PTTEP Joint Development SG PTE. LTD., the company's subsidiary, has signed a Sale and Purchase Agreement (SPA) to buy 100% of the outstanding shares of Hess International Oil Corporation, which, through its subsidiaries, holds a 50% participating interest in Block A-18 of the Malaysia-Thailand Joint Development Area (MTJDA) — a natural gas resource fundamental to electricity generation for Thailand's southern region. The base consideration was USD 450 million, subject to normal purchase price adjustments. Both sellers, Hess (Bahamas) Limited and Hess Asia Holdings Inc., are wholly owned, subsidiaries of Chevron following Chevron and Hess merger.

This transaction is now completed and immediately enhances PTTEP's gas production volume, petroleum reserves, and increases the company's investment in the MTJDA from the existing 50% participating interest in Block B-17-01.

Block A-18 currently produces 600 million standard cubic feet of natural gas per day (MMSCFD) which is equally distributed to Thailand and Malaysia. The 300 MMSCFD supplied to Thailand accounts for 6% of the country's domestic gas demand.

"PTTEP is pleased to further expand our operations in the MTJDA, which is recognized for its petroleum potential and strategic significance to Thailand's energy security. The acquisition also contributes to the company's growth. Apart from the existing producing fields, Block A-18 includes several discovered gas fields awaiting development to unlock their full potential. Participation in Block A-18 also fosters operational synergy with Block B-17-01, enhancing efficiency to ensure continuous and accelerated energy supply for both countries." said Mr. Montri.

Upon completion of the acquisition, the development of additional production wells and wellhead platforms, along with gas construction of gas pipelines, will be carried out to support a consistent and reliable gas supply.

MTJDA is located in the southern part of the Gulf of Thailand. Covering an area of approximately 7,250 square kilometers, it is a key source of natural gas and condensate for Thailand and Malaysia. Block A-18 which includes Cakerawala, Bumi, Suriya, Bulan, and Bulan South fields, started production in 2005. Block B-17-01 began production in 2010. The block includes Muda, Tapi, Tanjung, Amarit, Jengka, Melati, and Andalas fields, and currently produces approximately 300 MMSCFD of natural gas for Thailand and Malaysia

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