The Chevron logo is pictured in Caracas, Venezuela, December 2, 2022.

Thai oil and gas company PTT Exploration and Production (PTTEP) announced a $450 million deal to acquire a 50% stake in Block A-18, located in the Malaysia-Thailand Joint Development Area (MTJDA) in the Gulf of Thailand. The transaction was signed with Hess (Bahamas) and Hess Asia Holdings, subsidiaries of Chevron, following Chevron’s recent merger with Hess Corp.

The agreement grants PTTEP full ownership of Hess International Oil Corp, which holds a 50% interest in Block A-18. This acquisition strengthens PTTEP’s presence in the MTJDA, a 7,250-square-kilometer region in the southern Gulf of Thailand known for its significant petroleum resources. Block A-18 produces approximately 600 million standard cubic feet of gas daily, evenly distributed to Thailand and Malaysia, supporting power generation in southern Thailand.

PTTEP’s Chief Executive Officer, Montri Rawanchaikul, stated: "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 deal aligns with PTTEP’s efforts to bolster energy supply stability for the region.

Meanwhile, Chevron is undergoing a global restructuring to optimize operations and reduce costs, which may lead to workforce reductions of up to 20% by the end of 2026. Additionally, Chevron is exploring options to sell its 50% stake in a Singapore refinery, as reported by Reuters in June 2025.

The MTJDA remains a vital energy hub for Thailand and Malaysia, supplying natural gas and condensate to meet regional energy demands. The acquisition reflects PTTEP’s commitment to enhancing its role in this strategic area, ensuring a steady energy supply for both nations.

In a separate development, industries reliant on fossil fuels, previously considered for green hydrogen adoption, are facing challenges due to the high costs of transitioning to sustainable energy alternatives. This underscores the continued importance of conventional energy sources like those from Block A-18 in meeting current industrial needs.

by Reuters