PTTEP strikes a deal to acquire Shell’s stake in Bongkot Project
31 Jan 2018
- Signed agreement to acquire 22.2222% stake in Bongkot Project from Shell, value before tax of approximately USD 750 million
- Increase approximately 35,000 BOED of PTTEP sales volume with immediate cash flow contribution
- Ready to participate in bidding to continue as the operator of Bongkot, to maintain energy security for the country.
PTT Exploration and Production Public Company Limited (PTTEP) announces that on 31 January 2018, PTTEP and PTTEP International Limited (a wholly-owned subsidiary of PTTEP) have signed an Agreement for the Assignment and Transfer of the 22.2222% stake in the Bongkot Project from Shell subsidiaries, namely Shell Integrated Gas Thailand Pte. Limited and Thai Energy Company Limited, with the transaction value before tax of approximately USD 750 million. After the completion of the transaction, PTTEP’s stake in the Bongkot Project will increase to 66.6667%. The completion of transaction is subject to the completion conditions as prescribed in the agreement with an expected closing date within the second quarter of 2018.
“The acquisition fits to our growth strategy of adding producing assets or those in the final stage of development located in South East Asia where we have experience, and which immediately contributes sales volume, petroleum reserves, and cash flow,” said Somporn Vongvuthipornchai, Chief Executive Officer of PTTEP.
With regard to this acquisition, the company’s daily sales volume will be increased by approximately 35,000 barrels of oil equivalent per day (BOED).
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 the remaining stake owned by Total (33.3333%), a major French oil and gas company. Current sales volume is approximately of 860 million cubic feet per day of natural gas and 26,000 barrels per day of condensate. 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.
“With regard to the Bongkot concession expiry in 2022-2023, we are ready to participate in bidding to continue as the operator in order to maintain energy security for the country,” added by Somporn.
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