Thailand’s PTT Exploration and Production is ramping up its offshore development activity in Malaysia, moving on multiple fronts across drilling, subsea and platform fabrication as the company expands what has become one of its most active international operating regions.
PTTEP took its first final investment decision on a greenfield oil development offshore Malaysia earlier this year, sanctioning the SK405B project in Sarawak. The development covers the Chenda and Sirung oil fields and will be produced through a new central processing platform and wellhead platform. Facilities are being engineered for zero routine flaring and remote operations. First oil is targeted for 2028, with a combined production capacity from the two fields of approximately 15,000 barrels per day. PTTEP Sarawak Oil is the operator, with PETRONAS Carigali and Mitsui Energy Development as partners.
On the drilling side, PTTEP contracted Seadrill’s West Capella drillship for a 440-day programme offshore Malaysia starting in the second quarter of 2026, with operations covering deepwater well commitments across its portfolio. Separately, Velesto’s NAGA 5 jackup has been working on PTTEP’s 2025 to 2026 drilling campaign under a 15-well firm programme that began in June 2025, while a five-year contract was awarded to SED Energy Holdings’ Energy Drilling rig for further offshore drilling support.
In the subsea segment, SLB OneSubsea secured an EPC contract from PTTEP Sabah Oil Limited to deliver integrated subsea production systems for the second development of the Kikeh 3B project offshore Malaysia, covering three subsea trees, a manifold, a subsea distribution unit and integrated control systems. It was the third major subsea award from PTTEP to SLB OneSubsea in twelve months, with project execution running through 2026 and 2027.
On the platform fabrication side, Malaysia Marine and Heavy Engineering secured a four-year contract from PTTEP for the engineering, procurement and construction of up to 11 wellhead platform facilities in Sarawak, each weighing approximately 1,500 to 2,000 tonnes, to be fabricated at MHB’s yard in Pasir Gudang, Johor, before offshore installation.
PTTEP currently operates or holds interests in more than ten projects across Malaysia spanning exploration, development and production phases. Its Malaysian portfolio covers blocks including SK405B, SK438, SK314A, SK417, PM407, SB412, SK325, SK410B, Block K, SK309, SK311, Block H and the Malaysia-Thailand Joint Development Area.
The stepped-up pace of activity in Malaysia reflects PTTEP’s stated strategy of diversifying its production base beyond Thailand and building a stronger international upstream portfolio. Malaysia has emerged as the company’s most significant international growth arena, with multiple blocks in simultaneous phases of activity at a time when Southeast Asian energy demand continues to grow and regional operators are under pressure to maintain and grow domestic supply.
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