Good news for Malaysia's oil and gas industry, Thailand's oil company plans to invest in the "land of hornbills".

According to BMI research under Fitch Solutions, in the long and short term, Malaysia will still be the main destination for investment by Thailand's national oil company, PTT Exploration and Production (PTTEP).

The market research firm stated that PTTEP has a large number of assets in Malaysia and is seeking to strengthen its exploration and production activities in neighboring countries, while also seeking more natural gas assets.

PTTEP is expected to announce the final investment decision (FID) for the development of the Lang Lebah gas field in the SK410B block, located 90 kilometers off the coast of Miri, Sarawak, this year. The project is expected to yield its first batch of natural gas in 2027.

BMI research agency also stated that PTTEP's prospects for oil and gas investments in Southeast Asia are expected to continue to rise, as the company has committed to further investments in neighboring countries such as Malaysia, Myanmar, and Vietnam.

PTTEP, through its subsidiaries PTTEP HK Offshore (holding 42.5%), KUFPEC Malaysia (holding 42.5%), and Petronas (holding 15%), has invested in Malaysia and has completed front-end engineering design, including carbon capture and storage projects.

The Lang Lebah project is planned to supply liquefied natural gas to Miri and other industries in Sarawak, with an expected peak annual natural gas production of 3.3 billion cubic meters.

PTT's exploration and production may continue to advance the Lang Lebah project, as the project complements Malaysia's liquefied natural gas investment and long-term natural gas supply strategy.

The company is still conducting exploration activities in various blocks, including SK410B (LLB/Paprika-1), SK417, SK314A, SK438, SK405B, PM415, and PM407.

In addition, the Malaysia-Thailand Joint Development Area (MTJDA) is another joint venture plan committed to investment by PTT's exploration and production.

The company and Petroliam Nasional Berhad (PETRONAS) have obtained approval from the governments of Malaysia and Thailand to extend the production period for another 10 years until 2039.

The goal of both parties is to increase the natural gas production of Blocks A-17 and A-18 in the Malaysia-Thailand Joint Development Area by 500 million 20 million cubic meters.

On the other hand, BMI research institution predicts that the planned capital expenditure (capex) of the 15 major oil and gas companies tracked in Asia will reach $136.4 billion (603.6 billion ringgit) this year, an expected 4.8% increase from last year.

"PETRONAS' overseas business investment this year will further increase, as the company and its partners, including TotalEnergies in EP Angola Block 20 and Sonangol Pesquera e Produção SA, have made final investment decisions to develop the Cameia and Golfinho oil fields in Block 20/11 offshore Angola."

The national oil company holds a 40% equity stake in the project.

Since the national oil subsidiary, E&P Bobara, signed a production sharing contract in the Bobara operating area near Papua, Indonesia in May this year, it is expected that exploration capital expenditure in Indonesia will increase this year.

The national oil company operates and holds 100% equity in the Bobara operating area.