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.