Malaysia-Thailand joint development area
Encyclopedia
The Malaysia-Thailand Joint Development Area is a 7,250 km square area in the Gulf of Thailand
which was created as an interim measure to exploit the natural resources in the seabed or continental shelf claimed by the two countries and to share the proceeds equally. The arrangement does not extinguish the legal right to claims by both countries over the area. This is one of the first applications of the joint development principle in territorial disputes in the world.
The two countries signed a memorandum of understanding on 21 February 1979 in Chiang Mai, Thailand for the establishment of the joint development area and authority to administer the area. This was followed by an agreement to constitute the joint development authority on 30 May 1990 in Kuala Lumpur, Malaysia.
As of the end of 2007, approximately 8.5 trillion standard cubic feet of gas reserves (proved and probable) from twenty two fields in the area have been discovered. Gas production from the Cakerawala gas field began on 2 January 2005.
of the continental shelf by the two countries. The western and north-eastern boundaries of the JDA is that of Malaysia's continental shelf claim as asserted in its 1979 map issued by the country's Survey and Mapping Department. The southern boundary coincides with Thailand's exclusive economic zone boundary as proclaimed in 1988.
A portion of the joint development area is also claimed by Vietnam and is known as the Tripartite Overlapping Claim Area. The three countries have agreed to utilise the joint development formula for the exploitation of resources in the area but no further developments have been reported so far.
Malaysia's continental shelf limit claim is from Point A to Point C via Point B and thence to Point G while Thailand's Exclusive Economic Zone claim limit is from Point A to Point G through Points D, E, and F. It has not delimited its continental shelf limits beyond Point G.
PC JDA LLtd is a wholly owned subsidiary company of Petronas Carigali Sdn. Bhd. while PTTEP International Ltd is a wholly owned subsidiary company of PTT Exploration and Production Public Company Limited.
The period for exploration ended on 20 April 2002 and the above contractors retained the gas fields holding areas in their respective blocks but had to relinquish the areas not deemed as gas fields holding areas back to the MTJA. The relinquished areas of the JDA (approximately 3,475 km square) was made into a new block named Block B-17-01. A PSC was signed on 30 September 2004 for the contractors for the new block. They are:
Between 1994 to 2007, a total of 59 exploration and appraisal wells were drilled in the JDA. Thirty-seven wells were located in Block A-18 and 22 in Block B-17. Another three exploratory wells were drilled in the new Block B-17-01.
The main production complex in Block A-18 is the Cakerawala Production Complex which is located at the Cakerawala gas field. It was completed in May 2002 and production began with 19 wells (14 wells on Cakerawala A platform and 5 wells on Cakerawala B platform) on 2 January 2005. Seven wells were later developed on Cakerawala. The initial contracted production level under Phase One was 390000000 cuft/d.
In 2006, Phase Two commenced with the development of the Bumi, Suriya and Bulan fields as well as the expansion of Cakerawala C to sustain an additional contracted production level of 400000000 cuft/d. The gas is piped to a receiving facility in Songkhla
, Thailand and then piped to Malaysia where it feeds into the Peninsula Gas Utilisation system. An additional 5 wells were drilled on Cakerawala C, while 11 wells were drilled on Bumi A and seven wells on Suriya A. Drilling is still in progress in Bulan A. The additional gas is to be consumed by Thailand.
Construction for the production complex in Block B-17 is in progress and production is expected to begin in October 2009. An initial contract production level of 270000000 cuft/d has been signed. The gas is to be consumed by Thailand.
, Malaysia.
The MTJA board:
Co-chairmen: Abu Talib Othman (Malaysia), Sivavong Changkasiri (Thailand)
Members: Mohd Hassan Marican (President/Chief Executive Officer
Petronas
, Malaysia), Pornchai Rujiprapa (Permanent-Secretary, Ministry of Energy, Thailand), Dr Sulaiman Mahbob (Director-General, Economic Planning Unit, Prime Minister's Department, Malaysia), Admiral Werapon Waranon (Commander-in-Chief, Royal Thai Navy, Thailand), Dr Halim Man (Secretary-General, Ministry of Energy, Water and Telecommunications, Malaysia), Porntip Jala (Secretary-General, Office of The Council of State , Thailand), Othman Hashim (Deputy Secretary-General I, Ministry of Foreign Affairs, Malaysia), Krairit Nikuha (Director-General, Department of Mineral Fuels, Ministry of Energy, Thailand), Aziyah Baharuddin (Secretary, Tax Analysis Division, Ministry of Finance, Malaysia), Piyabhan Nimmanhaemin (Director-General, Comptroller-General's Department, Ministry of Finance, Thailand), Idrus Harun (Head, Advisory and International Law Division, Attorney-General's Chambers, Malaysia), and Virachai Plasai (Director-General, Department of Treaties and Legal Affairs, Ministry of Foreign Affairs, Thailand).
Gulf of Thailand
The Gulf of Thailand , also known in to Malays as Teluk Siam literally meant Gulf of Siam, is a shallow arm of the South China Sea.-Geography:...
which was created as an interim measure to exploit the natural resources in the seabed or continental shelf claimed by the two countries and to share the proceeds equally. The arrangement does not extinguish the legal right to claims by both countries over the area. This is one of the first applications of the joint development principle in territorial disputes in the world.
The two countries signed a memorandum of understanding on 21 February 1979 in Chiang Mai, Thailand for the establishment of the joint development area and authority to administer the area. This was followed by an agreement to constitute the joint development authority on 30 May 1990 in Kuala Lumpur, Malaysia.
As of the end of 2007, approximately 8.5 trillion standard cubic feet of gas reserves (proved and probable) from twenty two fields in the area have been discovered. Gas production from the Cakerawala gas field began on 2 January 2005.
The area
The joint development area basically coincides with the area of overlapping claimMalaysia-Thailand border
The Malaysia-Thailand border consists of both a land boundary across the Malay Peninsula and maritime boundaries in the Straits of Malacca and the Gulf of Thailand/South China Sea. Malaysia lies to the south of the border while Thailand lies to the north...
of the continental shelf by the two countries. The western and north-eastern boundaries of the JDA is that of Malaysia's continental shelf claim as asserted in its 1979 map issued by the country's Survey and Mapping Department. The southern boundary coincides with Thailand's exclusive economic zone boundary as proclaimed in 1988.
A portion of the joint development area is also claimed by Vietnam and is known as the Tripartite Overlapping Claim Area. The three countries have agreed to utilise the joint development formula for the exploitation of resources in the area but no further developments have been reported so far.
| Point | Latitude (N) | Longtitude (E) | Remarks | |
|---|---|---|---|---|
| Joint Development Area turning points | ||||
| A | 6° 50'.0 | 102° 21'.2 | Northern terminus of agreed continental shelf border; Point 45 on Malaysia's 1979 map; Point 4 of Thailand's EEZ border | |
| B | 7° 10'.25 | 102° 29'.0 | Same as Point 44 on Malaysia's 1979 map | |
| C | 7° 48'.0 | 103° 02'.5 | Same as Point 43 on Malaysia's 1979 map | |
| D | 7° 22'.0 | 103° 42'.5 | Same as Point 8 of Thailand's EEZ border; located on Malaysia's continental shelf boundary between Point 43 and Point 42 in the 1979 map. | |
| E | 7° 20'.0 | 103° 39'.0 | Same as Point 7 of Thailand's EEZ border | |
| F | 7° 03'.0 | 103° 06'.0 | Same as Point 6 of Thailand's EEZ border | |
| G | 6° 53'.0 | 102° 34'.0 | Same as Point 5 of Thailand's EEZ border | |
| Boundary coordinates of area within the joint development area claimed by Malaysia, Thailand and Vietnam | ||||
| 1 | 7° 48'.0 | 103° 02'.5 | Same as Point C of the Malaysia-Thailand JDA boundary; Point 43 on Malaysia's 1979 map; and Point C (eastern terminus) of the agreed Thailand-Vietnam continental shelf boundary. | |
| 2 | 7° 22'.0 | 103° 42'.5 | Same as Point D of the Malaysia-Thailand JDA | |
| 3 | 7° 20'.0 | 103° 39'.0 | Same as Point E of the Malaysia-Thailand JDA; same as Point B of the Malaysia-Vietnam joint development defined area Malaysia-Vietnam border Malaysia and Vietnam are two South-east Asian countries with maritime boundaries which meet in the Gulf of Thailand and South China Sea. The two countries have overlapping claims over the continental shelf in the Gulf of Thailand... boundary. |
|
| 4 | 7° 18'.31 | 103° 35'.71 | Located along the south-eastern border of the Malaysia-Thailand JDA between Point E and Point F; same as Point C of the Malaysia-Vietnam joint development defined area boundary. The boundary then continues back to Point 1. | |
Malaysia's continental shelf limit claim is from Point A to Point C via Point B and thence to Point G while Thailand's Exclusive Economic Zone claim limit is from Point A to Point G through Points D, E, and F. It has not delimited its continental shelf limits beyond Point G.
Exploration
The joint development area was originally divided into three blocks for exploration. They are Blocks A-18 (middle portion of the JDA), B-17 (northern portion) and C-19 (southern portion). On 21 April 1994, two production sharing contracts (PSC) were awarded by the Malaysia-Thailand Joint Authority (MTJA) to two groups of contractors. Each group of contractors also formed operating companies for exploraion. They were:- Block A-18:
- Contractors: PC JDA Ltd (50% share in the contract), Hess Oil Company of Thailand (JDA) Ltd (49.5%) and Hess Oil Company of Thailand Inc (0.5%)
- Operator: Carigali Hess Operating Company Sdn Bhd
- Blocks B-17 and C-19
- Contractors: PTTEP International Limited (50%), PC JDA Ltd (50%)
- Operator: Carigali-PTTEPI Operating Company Sdn Bhd (CPOC)
PC JDA LLtd is a wholly owned subsidiary company of Petronas Carigali Sdn. Bhd. while PTTEP International Ltd is a wholly owned subsidiary company of PTT Exploration and Production Public Company Limited.
The period for exploration ended on 20 April 2002 and the above contractors retained the gas fields holding areas in their respective blocks but had to relinquish the areas not deemed as gas fields holding areas back to the MTJA. The relinquished areas of the JDA (approximately 3,475 km square) was made into a new block named Block B-17-01. A PSC was signed on 30 September 2004 for the contractors for the new block. They are:
- Block B-17-01:
- Contractors: PTTEP International Ltd (50%), PC JDA Ltd (50%)
- Operator: Carigali-PTTEPI Operating Company Sdn Bhd (CPOC)
Between 1994 to 2007, a total of 59 exploration and appraisal wells were drilled in the JDA. Thirty-seven wells were located in Block A-18 and 22 in Block B-17. Another three exploratory wells were drilled in the new Block B-17-01.
Production
Twenty two gas fields have been declared in the JDA. As of the end of 2007, approximately 8.5 trillion standard cubic feet of proved and probable gas reserves have been discovered in the 22 fields. Some of these fields also have minor oil accumulations. The fields are:- Block A-18 (nine fields):
- Cakerawala
- Bulan
- Suriya
- Bumi
- Bumi East
- Senja
- Samudra
- Wira, and
- Samudra North
- Block B-17 (10 fields):
- Muda
- Tapi
- Jengka
- Amarit
- Mali
- Jengka South
- Jengka West
- Jengka East, and
- Muda South
- Block B-17-01 (three fields):
- Tanjung
- Jinda, and
- Andalas
The main production complex in Block A-18 is the Cakerawala Production Complex which is located at the Cakerawala gas field. It was completed in May 2002 and production began with 19 wells (14 wells on Cakerawala A platform and 5 wells on Cakerawala B platform) on 2 January 2005. Seven wells were later developed on Cakerawala. The initial contracted production level under Phase One was 390000000 cuft/d.
In 2006, Phase Two commenced with the development of the Bumi, Suriya and Bulan fields as well as the expansion of Cakerawala C to sustain an additional contracted production level of 400000000 cuft/d. The gas is piped to a receiving facility in Songkhla
Songkhla
Songkhla is a city in the Songkhla Province of southern Thailand, near the border with Malaysia. As of 2006 it had a population of 75,048...
, Thailand and then piped to Malaysia where it feeds into the Peninsula Gas Utilisation system. An additional 5 wells were drilled on Cakerawala C, while 11 wells were drilled on Bumi A and seven wells on Suriya A. Drilling is still in progress in Bulan A. The additional gas is to be consumed by Thailand.
Construction for the production complex in Block B-17 is in progress and production is expected to begin in October 2009. An initial contract production level of 270000000 cuft/d has been signed. The gas is to be consumed by Thailand.
The joint authority
The joint development area is administered by the Malaysia-Thailand Joint Authority on behalf of the two governments. The authority is recognised as a statutory body in both countries and is given full rights to exploit and develop non-living natural resources in the joint development area. The authority was created in 1991 and has its headquarters in Kuala LumpurKuala Lumpur
Kuala Lumpur is the capital and the second largest city in Malaysia by population. The city proper, making up an area of , has a population of 1.4 million as of 2010. Greater Kuala Lumpur, also known as the Klang Valley, is an urban agglomeration of 7.2 million...
, Malaysia.
The board
The authority is governed by a board with members consisting of equal representatives of Malaysian and Thai nationals (seven from each side) as appointed by the respective Governments. Under the supervision of authority's board, the MTJA management consists of staff covering technical, legal and financial aspects of the petroleum business.The MTJA board:
Co-chairmen: Abu Talib Othman (Malaysia), Sivavong Changkasiri (Thailand)
Members: Mohd Hassan Marican (President/Chief Executive Officer
Petronas
Petronas
PETRONAS, short for Petroliam Nasional Berhad, is a Malaysian oil and gas company that was founded on August 17, 1974. Wholly owned by the Government of Malaysia, the corporation is vested with the entire oil and gas resources in Malaysia and is entrusted with the responsibility of developing and...
, Malaysia), Pornchai Rujiprapa (Permanent-Secretary, Ministry of Energy, Thailand), Dr Sulaiman Mahbob (Director-General, Economic Planning Unit, Prime Minister's Department, Malaysia), Admiral Werapon Waranon (Commander-in-Chief, Royal Thai Navy, Thailand), Dr Halim Man (Secretary-General, Ministry of Energy, Water and Telecommunications, Malaysia), Porntip Jala (Secretary-General, Office of The Council of State , Thailand), Othman Hashim (Deputy Secretary-General I, Ministry of Foreign Affairs, Malaysia), Krairit Nikuha (Director-General, Department of Mineral Fuels, Ministry of Energy, Thailand), Aziyah Baharuddin (Secretary, Tax Analysis Division, Ministry of Finance, Malaysia), Piyabhan Nimmanhaemin (Director-General, Comptroller-General's Department, Ministry of Finance, Thailand), Idrus Harun (Head, Advisory and International Law Division, Attorney-General's Chambers, Malaysia), and Virachai Plasai (Director-General, Department of Treaties and Legal Affairs, Ministry of Foreign Affairs, Thailand).