PTT Exploration and Production (SET: PTTEP) has announced its strategic acquisition of a 49.99% equity stake in AzurVista Resources from TotalEnergies SE. AzurVista holds a 20% working interest in the SK408 block, a shallow-water, offshore gas project located in Sarawak, Malaysia. Following the transaction, PTTEP will ultimately own a 9.998% interest in the SK408 block alongside partners TotalEnergies EP Sarawak (20%), Petronas Carigali (30%), and Sarawak Shell (30%).
The SK408 block represents PTTEP’s eleventh investment in Malaysia, reinforcing the company’s commitment to the country as a core focus area. The block comprises four producing fields and two additional discovered fields scheduled to commence operations around 2030. Gas production is approximately 750 million cubic feet per day, with condensate production at 15,000 barrels per day. Net to PTTEP, output is forecasted at 10,000 barrels of oil equivalent per day (2026-2030), rising to 12,000 barrels per day (2031-2035).
Reserves in the block are estimated at 4 trillion cubic feet, or roughly 52 million barrels of oil equivalent (29 million proved, 23 million probable) attributable to PTTEP. The project is expected to require an investment of US$338 million, funded from PTTEP’s cash. The transaction implies a valuation of US$6.5 per barrel of proven and probable reserves (EV/2P). The SK408 project is forecast to deliver around US$12.5 million per year in profit-sharing to PTTEP.
Kiatnakin Phatra Securities (KKPS) views the investment positively, noting that it will further cement PTTEP’s position in Malaysia and strengthen its partnerships with key industry players; TotalEnergies and Petronas. However, analysts consider the acquisition to be discounted cash flow (DCF) neutral, offering only marginal incremental value based on a weighted average cost of capital (WACC) of 10%. KKPS maintains a BUY rating on PTTEP, with a price objective of THB 143.00.
