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NEWS UPDATES 20 February 2010

Malaysia, Thai joint gas field starts distribution to Thailand

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Thailand is benefiting from its joint agreement with Malaysia for natural gas production, reported Thai national news agency TNA.

Block B-17 of the Muda and Jengka natural resources fields in the Malaysia-Thailand Joint Development Area (JDA) began daily distribution of its first lot of gas reserves earlier this month to Thailand.

According to Dr Kurujit Nakornthap, director-general of Thailand's Mineral Fuels Department, the first production of natural gas, 135 million cubic feet, was sent to Thailand according to the two countries’ agreement on petroleum exploitation.

Dr Kurujit said within the next 90 days, the production ratio is set to reach 270 million cubic feet per day.

As Thailand is currently distributing natural gas to its system via JDA Block A-18, receiving the gas also from Block B-17 enables the country to have natural gas reserves of some 600 million cubic feet daily in its system, and to later increase that amount to about 750 million per day once Block B-17 produces gas at full capacity on February 25.

The JDA is an area of overlapping continental shelf claimed by both Malaysia and Thailand some 7,250 sq km area, located in the lower part of the Gulf of Thailand in the North Malay Basin, where geochemical studies show a rich source potential for gas and an ample amount of oil.

The two governments agreed in 1979 to jointly explore and exploit non-living natural resources for mutual and equal benefit, with the JDA being administered by the Malaysia-Thailand Joint Authority (MTJA) on petroleum exploration and production under the Malaysia-Thailand Joint Authority Act of 1990/ B.E.2533.

The exploration area was divided into three blocks--Blocks A-18, B-17 and C-19--indicating the three parts of the JDA’s middle, northern and southern areas.


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