PTT Exploration and Production Plc (PTTEP) today announced that its subsidiary had entered into an agreement to buy an exploration licence for AC/P 33 or Oliver block in Timor Sea, northwest of Australia, for US$ 35 million.
Anon Sirisaengtaksin, PTTEP’s chief executive officer, said in the report to the Stock Exchange of Thailand that the company’s subsidiary, PTTEP Australasia (Ashmore Cartier) Pty Ltd, had signed the agreement with Stuart Petroleum Limited and Albers Group for the licence, which is still pending approval from the Australian government and the fulfillment of some conditions.
The Oliver block, he said, covers an area of 421 square kilometers and about 40 kilometers away from PTTEP’s existing blocks, Jabiru and Challis.
He said, “The participation investment in Oliver block is in line with PTTEP’s key strategic objectives in expanding investment from its existing exploration activities in Australia in order to support a future development of floating liquefied natural gas (LNG) business.”
PTTEP also disclosed in another statement that Oliver block is in the proximity of Audacious and Tenacious offshore fields and other assets which it had earlier acquired from OMV Timor Sea Pty Ltd.
While the company expects the deal with Stuart Petroleum Ltd and Albers Group will be fully effective around the end of November, Stuart Petroleum will however continue with its plan to drill one appraisal well within this month for PTTEP, the statement said.
PTTEP is a subsidiary of Thailand’s biggest energy firm PTT and is involved in oil and gas exploration and production both in Thailand and overseas. Its overseas projects are located in Southeast Asia, Middle East, Australia and North Africa.
Currently, 16 of its projects are under production phase and 24 projects in development and exploration phases.