Bangkok: The Cabinet has approved the transfer of 40% of the rights and obligations of MP G2 Co., Ltd. to PTT Exploration and Production Public Company Limited (PTTEP) for an exploration block in the Gulf of Thailand. This decision involves the production sharing contract for exploration block G1/61, which holds significant potential for petroleum development.
According to Thai News Agency, the Deputy Government Spokesperson, Ms. Sasikan Wattanachan, disclosed that the approval allows MP G2 (Thailand) Co., Ltd. to transfer its entire stake under Production Sharing Contract No. 1/2562/1 to PTTEP Energy Development Co., Ltd., as recommended by the Ministry of Energy. The Energy Ministry is set to issue an additional production sharing contract to formalize this transfer.
The initial production sharing contract was issued on February 25, 2019, granting PTTEP Energy Development Co., Ltd. a 60% interest as the operator, while MP G2 (Thailand) Co., Ltd. held a 40% interest. The recent transfer aligns with the provisions of the Petroleum Act B.E. 2514 (1971) and its amendments, following MP G2's notification of its intention to transfer its stake to PTTEP.
The Petroleum Committee, during its meeting on August 27, 2024, approved the transfer, recognizing PTTEP Energy Development Co., Ltd. as meeting the necessary qualifications to hold the concession. With this transfer, PTTEP Energy Development Co., Ltd. will assume full operational control, enhancing decision-making flexibility and expediting the development of crude oil resources in the exploration block to address the country's energy demands. The transfer does not impact government royalties or petroleum income tax.