PTTEP completes the acquisition of Shell’s stake in Bongkot field, Ready for the bidding to maintain energy security for Thailand
21 Jun 2018
- PTTEP’s stake in Bongkot field increases to 66.6667%
- Petroleum sales volume rises approximately 35,000 barrels of oil equivalent per day
- Strong determination to continue operatorship in Bongkot field to maintain energy security for Thailand
Bangkok 21 June 2018 - PTT Exploration and Production Public Company Limited (PTTEP) announced the acquisition completion of 22.2222% stake in the Bongkot field from Shell affiliates, after the Supplementary Petroleum Concession has been signed by all parties today, resulting in increasing PTTEP’s stake in the Bongkot field to 66.6667%. The acquisition was approved by Thai cabinet on 5 June 2018, after the signing of the Agreement for the Assignment and Transfer in January 2018.
The acquisition represents a strategic fit to PTTEP growth strategy in expanding its investments through Merger and Acquisitions (M&A) to add petroleum reserves in both near and longer terms. With this transaction, the company’s sales volume will be increased by approximately 35,000 barrels of oil equivalent per day (BOED). This deal is also an important step for PTTEP to show its strong commitment for the bidding to continue operatorship in Bongkot field to maintain energy security for Thailand.
“Operating the Bongkot field for 20 years has enhanced our expertise and experiences in gas fields in the Gulf of Thailand with competitive operating cost and ultimately deliver greater benefits to the country. We are confident that we will be able to maintain the continuity of natural gas supply for Thailand. As we stand firm to our commitment to maintain energy security for Thailand, PTTEP, as a prudent Thai operator, will definitely participate in the bidding of Bongkot and Erawan fields,” said Somporn Vongvuthipornchai, Chief Executive Officer of PTTEP.
Apart from the participation in the expiring concessions bidding, PTTEP is also seeking for new investments, focusing on producing assets or those in the final stage of development in Southeast Asia and the Midlle East which is in line with the company’s strategic plan.
About the Bongkot Project
The Bongkot Project, consisting of Block B15, B16, B17 and G12/48, is the natural gas field in the Gulf of Thailand operated by PTTEP with 66.6667% stake, while the remaining stake is owned by Total (33.3333%), a major French oil and gas company. Current sales volume is approximately of 841 million cubic feet per day of natural gas and 27,000 barrels per day of condensate (as of the end of Q1/2018). This gas field is a vital source of energy supply for electricity generation, accounting for approximately 30% of domestic natural gas output.
PTTEP’s operational capability in the Bongkot Project, the first offshore gas field operated by a Thai oil and gas company, clearly demonstrates competency of Thais in operating exploration and production assets at an international standard.
Moreover, natural gas derived from Bongkot also creates an extensive value chain for Thai petrochemical industry and Thai economy for many years, as it is an important raw material for petrochemical industries, including LPG which is widely used in other industries and households.