The Acquisition of Partex Holding B.V.
17 June 2019
Investor Relations Tel. +66(0) 2537 4868, +66(0) 2537 5843
17th June 2019
The Stock Exchange of Thailand
93 Ratchadapisek Road, Din Daeng
Subject: The Acquisition of Partex Holding B.V.
PTT Exploration and Production Public Company Limited (“PTTEP” or the “Company”) is pleased to announce that on 17th June 2019, PTTEP HK Holding Limited (a subsidiary of PTTEP) has signed a Share Purchase Agreement (“SPA”) to acquire a 100% stake in Partex Holding B.V. (Partex) from Calouste Gulbenkian Foundation. The total consideration of the transaction is approximately USD 622 million, subject to customary net working capital and closing adjustments.
Partex is a well-established oil and gas company with long presence in the Middle East for over 80 years. It currently holds 7 projects, primarily as a non-operating partner, in 5 countries with the focus areas in the Sultanate of Oman (Oman) and the United Arab Emirates (UAE). At the end of 2018, the total estimated proved and probable reserves (2P) was approximately 65 million barrels of oil equivalent (BOE), according to working interest. Total net sales volume in 2018 was 16,000 barrels of oil equivalent per day (BOED). Key projects are located in the Middle East as following details;
- The PDO (Block 6) Project is the largest and long lasting producing oil asset in Oman, located onshore central part of the country, covering around 1/3 of the country’s geographical area and operated by Petroleum Development Oman (PDO). Total oil production volume in 2018 was approximately 610,000 barrels per day (BPD) which accounted for around 70% of Oman’s total oil production. At present, Partex holds 2% interest.
- The Mukhaizna (Block 53) Project is the large producing oil field located onshore south of Oman, operated by Occidental. Total oil production volume in 2018 was approximately 120,000 BPD which accounted for around 13% of Oman’s total oil production. At present, Partex holds 1% interest.
- Oman LNG Project (OLNG) is the only gas liquefaction complex located south of Oman, consisting of three liquefaction trains with total LNG production capacity of 10.4 million tons per annum (MTPA) and operated by Oman LNG L.L.C. At present, Partex holds 2% interest in this project.
- ADNOC Gas Processing Project (AGP) is the largest gas processing complex located onshore of Abu Dhabi, UAE, with total processing capacity of 8 billion cubic feet per day (BCFD) and operated by Abu Dhabi National Oil Company (ADNOC). At present, Partex holds 2% interest in the gas processing plants that has the combined processing capacity of 1.2 BCFD.
Other projects include the Dunga Project which is a producing oil field located onshore west of the Republic of Kazakhstan, operated by Total. Total oil production volume in 2018 was approximately 15,000 BPD. At present, Partex holds 20% interest in this project. (For details of all projects, see Attachment)
The completion of transaction is subject to customary conditions precedent as prescribed in the SPA, with an expected closing date in the Fourth Quarter of 2019. After the completion, PTTEP will assume the same participating interests as Partex.
The acquisition of Partex fits with PTTEP’s Strategic Alliance Strategy, focusing on prolific areas in the Middle East by partnering with world class operators. This diversified self-funded portfolio will not only provide the immediate revenue stream, production and reserves, but also strengthen our relationship with the local governments, paving a strong path for PTTEP to expand its future exploration and production investments in this region.
Please be informed accordingly.
President and Chief Executive Officer