PTT Expands into New Frontiers with Greenfield Project Approval
Strategic Investment in Offshore Petroleum Development
PTTEP Exploration and Production (PTTEP) has announced a significant investment in a new offshore petroleum site in Malaysia. This marks the company's first greenfield development project in the country, signaling a strategic move to support long-term growth and expand its presence in the region.
The project, named SK405B, is located in the Balingian province of the Sarawak Basin off the coast of Sarawak in East Malaysia. PTTEP Sarawak Oil Limited, a subsidiary of PTTEP and the operator of the SK405B project, has made a final investment decision (FID) for the Sirung and Chenda fields within the Malaysian SK405B project.
"This marks our first FID for greenfield developments in Malaysia, one of our strategic countries," said PTTEP chief executive Montri Rawanchaikul. The development plan for both fields includes a central processing platform and a wellhead platform, designed to optimize production and operational efficiency.
First oil production is targeted for 2028, with a combined production capacity of approximately 15,000 barrels per day. The project also emphasizes environmental responsibility by incorporating zero routine flaring and advanced remote-operated offshore operations. Under zero routine flaring, the operator avoids the normal practice of burning excess natural gas during oil extraction, thereby reducing greenhouse gas emissions.
Following several successful discoveries made by PTTEP in Malaysia, the Sirung and Chenda fields represent an important step for the company from exploration to development. This phase lays the foundation for future greenfield opportunities, according to Mr. Montri.
"These developments underpin PTTEP's long-term growth and strengthen the company's presence in Malaysia, with a focus on environmental stewardship while supporting the country's energy landscape," he added.
Key Stakeholders and Project Structure
PTTEP Sarawak Oil holds a 49.5% participating interest in the SK405B project, with Petronas Carigali Sdn Bhd holding 25% and Mitsui Energy Development Co holding 25.5%. This collaborative structure highlights the importance of partnerships in large-scale energy projects.
So far, PTTEP has invested in more than 10 projects in Malaysia across the exploration, development, and production phases. The company continues to explore new opportunities to enhance its portfolio and contribute to the region's energy needs.
In Thailand, PTTEP is preparing to build the country's first carbon capture and storage (CCS) facility at its Arthit gas field in the Gulf of Thailand this year. This initiative marks a major step in efforts to cut greenhouse gas emissions and reach net-zero targets.
The project, approved in September 2025, will be capable of capturing and storing up to 1 million tonnes of carbon dioxide annually. This advancement underscores PTTEP's commitment to sustainable practices and reducing its environmental footprint.
Environmental and Operational Advancements
The integration of zero routine flaring into the SK405B project demonstrates PTTEP's dedication to minimizing its impact on the environment. By avoiding the burning of excess natural gas, the company reduces harmful emissions and contributes to cleaner energy production.
Advanced remote-operated offshore operations further enhance the project's efficiency. These technologies allow for real-time monitoring and management of operations, reducing the need for on-site personnel and improving safety.
The SK405B project is not only a milestone for PTTEP but also a significant contribution to Malaysia's energy sector. It provides a model for future developments that balance economic growth with environmental responsibility.
Future Prospects and Global Initiatives
As PTTEP continues to invest in innovative projects, it remains focused on global sustainability goals. The company's efforts in carbon capture and storage, along with its commitment to greenfield developments, reflect a broader strategy to lead the transition toward a low-carbon future.
The success of the SK405B project could pave the way for similar initiatives in other regions. By leveraging its expertise and partnerships, PTTEP aims to drive progress in the energy sector while adhering to strict environmental standards.
With a clear vision for the future, PTTEP is well-positioned to play a key role in shaping the global energy landscape. Its ongoing investments and commitments to sustainability highlight a forward-thinking approach that benefits both the company and the communities it serves.
