Petronas Carigali (PC JDA), a subsidiary of Malaysia’s national oil company Petronas, and PTTEP JDX, a subsidiary of Thailand’s PTTEP, have received approval from the governments of both countries for a new 35-year Production Sharing Contract (PSC) for Block A-18-01 in the Malaysia-Thailand Joint Development Area (MTJDA). At the same time, the two companies signed Gas Sales Agreements (GSA) with Petronas and PTT on the sidelines of Gastech 2026 in Bangkok. The event occurred on September 14.
The MTJDA is a jointly developed area between Malaysia and Thailand located in the Gulf of Thailand, and Block A-18-01 is an existing gas field development project within this area. With this PSC extension approval, PC JDA and PTTEP JDX will be able to operate the block for 35 years starting January 1, 2026, with each company holding a 50% stake.
Production is reported at approximately 300 to 400 MMscfd (million standard cubic feet per day). The contract term is 35 years starting January 1, 2026, and Thailand’s share of the gas is set to be supplied for power generation in southern Thailand, reportedly equivalent to about 4% of the country’s total natural gas consumption.
The MTJDA is an offshore gas field area that Malaysia and Thailand have jointly developed over a long period, and this PSC extension is interpreted as a measure by the two national oil companies to maintain the existing production regime stably over the long term and underpin natural gas supply security for both countries.
In Southeast Asia, extending production contracts for existing mature gas fields is being treated as an energy security matter no less important than developing new large-scale gas fields, and this case demonstrates that Malaysia and Thailand continue to sustain long-term cooperation in a cross-border joint development area. The 35-year contract term suggests that the two national oil companies are planning additional investment in the block, such as production enhancement facilities and exploratory drilling, which is expected to generate continued demand for related oilfield service and offshore drilling service markets. In addition, stabilizing gas supply for power generation in Thailand is likely to have a positive effect on fuel procurement stability for gas combined-cycle power plants within the country.
Whether PC JDA and PTTEP JDX will disclose plans for additional exploration and development investment over the 35-year contract term is worth watching. The actual timing of gas supply commencement following this GSA signing, and which power plants in Thailand will be prioritized to receive the gas, also need to be confirmed. In addition, whether similar long-term contract extensions will follow at other blocks within the MTJDA is a point to watch.