- Mergers & Acquisitions
Shell completes sale of stake in Thailand’s Bongkot Field to PTTEP
Shell announced the completion of the sale of its affiliates’ interest in the Bongkot Field and adjoining acreage offshore Thailand to PTT Exploration & Production Public Company Limited (PTTEP) and PTTEP International Limited, a wholly owned subsidiary of PTTEP, for a transaction value of USD 750 million. Shell affiliates Shell Integrated Gas Thailand Pte Ltd and Thai Energy Company Ltd owned a 22.2222% interest in Thailand’s Bongkot Field project. This gas field is a vital source of energy supply for electricity generation, accounting for approximately 30% of Thailand’s domestic natural gas output.
Completion of this deal shows the clear momentum behind Shell’s value-driven USD 30 billion divestment program, which is in line with Shell’s drive to simplify and refocus its portfolio, reshaping the company into a world-class investment, the company said in a statement.
The sale, which consisted of Shell’s stake in Blocks 15, 16 and 17 and Block G12/48, was originally announced on 31 January 2018. The completion follows receipt of the necessary regulatory approvals.
PTTEP is the operator of Bongkot and with the completion of this transaction, PTTEP has increased its stake in Bongkot to 66.6667%. The remaining 33.3333% belongs to Total.
According to PTTEP, this acquisition represents a strategic fit to PTTEP’s growth strategy in expanding its investments through mergers and acquisitions to add petroleum reserves to its portfolio. With this transaction, the company’s sales volume will increase by approximately 35,000 barrels of oil equivalent per day (BOED). This deal is also an important step for PTTEP, to show its commitment for the bidding to continue in operating Bongkot for Thailand’s energy security.
“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, PTTEP CEO.
The announcement has no impact on Shell’s other business interests in Thailand, the company said in a statement.