KL, Bangkok join in gas venture

KL, Bangkok join in gas venture

BANGKOK (AFP): The Petroleum Authority of Thailand (PTT) and Malaysia's Petroleum Nasional Bhd. (Petronas) agreed yesterday on principles for the joint exploitation of natural gas in the Gulf of Thailand.

The memorandum of intent signed Tuesday covers joint venture natural gas projects in the Malaysia-Thailand Joint Development Area.

The area consists of three concession blocks in a 7,250-square-kilometer (2,900-square-mile) area of the Gulf of Thailand claimed by both states as part of their overlapping 200- mile exclusive economic zones, a PTT statement said.

Under the deal, Petronas and PTT would enter a strategic alliance to purchase the gas from the Malaysia-Thailand Joint Authority and the concessionaires.

Gas reserves in the development area were estimated at 6,000- to-7,000 billion cubic feet.

Production is expected to commence in 1999 at 300-to-500 million cubic feet a day, it said.