KUALA LUMPUR (June 1): Petroliam Nasional Bhd (Petronas) and Thailand-listed PTT Exploration and Production Plc (PTTEP) are planning to jointly explore and produce oil and gas (O&G) within the Gulf of Thailand to increase both companies' petroleum output.

Bangkok Post quoted PTTEP chief operating officer Phongsthorn Thavisin as saying talks between Petronas and PTTEP began in 2014.

It was reported that Petronas and PTTEP were planning a new project to operate in the areas of the previous project undertaken by Carigali PTTEPI Operating Co Sdn Bhd (CPOC). CPOC is a joint venture within the Malaysia-Thailand Joint Authority.

"If the deal is successful, it will also help increase output in the CPOC area," Phongsthorn said.

He said the collaboration could be a win-win deal for both Petronas and PTTEP as Petronas would be able increase petroleum output and efficiency while PTTEP would be able to raise its petroleum output from Malaysian O&G fields.

According to Phongsthorn, Petronas and PTTEP's negotiations are expected to be finalised by end of this year.

Petronas has not issued a statement on the matter on its website.