PTTEP strikes a deal to acquire Shells stake in Bongkot Project

Energy Press Releases Wednesday January 31, 2018 12:57
Bangkok--31 Jan--PTTEP
  • 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.
Website: http://www.pttep.com
Facebook: http://www.facebook.com/pttepplc

Latest Press Release

World makes great progress on energy access, but ambitious action needed to achieve sustainable energy goal by 2030, says UN

Remarkable progress has been made in broadening electricity access globally, however sustained political will and increased public and private finance are urgently needed to provide affordable and clean energy to the 1.2 billion people without access to...

Glows ongoing focus on Operational Excellence leads to solid results for 2017. Glow proposes a full-year dividend of 5.75 THB/share to shareholders.

- Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), excluding adjustments for Financial Lease accounting, of THB 18,053 million, - Net Profit of THB 9,076 million, and - Normalized Net Profit ("NNP") (net profit excluding net...

Photo Release: A Courtesy Visit to Myanmar by PTTEP BoD

Dr. Prajya Phinyawat, Chairman of the Board of Directors, PTT Exploration and Production Public Company Limited (PTTEP), recently led the Board of Directors to pay a courtesy visit to His Excellency U Win Khaing, Union Minister for Ministry of...

Sasol Chemicals Expands Alumina Production Capacity to Meet Growing Market Demand

Sasol Chemicals' Inorganics and Catalyst division announced the completion of its alumina capacity expansion at Sasol's Brunsbuettel site in Germany. The expansion will increase Sasol's alumina hydrate production capacity in Brunsbuettel by...

JA Solar Supplies Mono PERC Modules for 250MW Solar Project in Israel

JA Solar Holdings Co., Ltd. (NASDAQ-NMS: JASO) ("JA Solar"), one of the world's largest solar product manufacturers, today announced the shipment of modules to the Ashalim 250MW solar project, which is the largest utility-scale project using JA's Mono...

Related Topics