PTTEP Enters Farm-out Agreement with Petronas for 10% Stake in Malaysia’s Block SK405B Project

PTT Exploration and Production Public Company Limited (SET: PTTEP), has announced that, on 29 September 2023, PTTEP Sarawak Oil Limited (PTTEP SKO), a subsidiary of PTTEP, has entered into a Farm-Out Agreement to transfer ten percent (10%) of its participating interest in Block SK405B PSC to Petronas Carigali Sdn. Bhd. (PCSB). 

The divestment will be completed after all conditions precedent stipulated in the said agreement are fulfilled, which include obtaining all necessary approvals from Petroliam Nasional Berhad (PETRONAS) through Malaysia Petroleum Management, as the custodian of national hydrocarbon resources in Malaysia. 

The completion is anticipated within the first quarter of 2024. After completion, the participation interest will be as follows: PTTEP SKO (Operator) 49.5%, PCSB25% and MOECO Oil (Sarawak) Sdn. Bhd. (MOECO) 25.5%. 

PTTEP stated that this divestment aligns with PTTEP’s investment strategy to rationalize participating interests and investment partners which would help accelerate the project development as well as reduce risk and development costs.