• Natural Gas News

    Shell Sells Stake in Thai Bongkot Gas Field

Summary

Shell on January 31 said it is selling stake in its gas assets in Thailand as part of its $30bn divestment and portfolio simplification program.

by: Shardul Sharma

Posted in:

Natural Gas & LNG News, Asia/Oceania, Corporate, Mergers & Acquisitions, News By Country, Thailand

Shell Sells Stake in Thai Bongkot Gas Field

Shell on January 31 said it is selling stake in its gas assets in Thailand to Kuwait's Kufpec for $900mn.

The deal, like Shell's up-to-$3.8bn sale of North Sea assets announced the same day to Chrysaor, is part of the major's $30bn divestment program.  

Shell reached an agreement whereby Kufpec Thailand Holdings, a subsidiary of Kuwait Foreign Petroleum Exploration Company (Kufpec), will buy Shell Integrated Gas Thailand and Thai Energy Co, both Shell subsidiaries, which together hold a 22.222%  stake in the Bongkot natural gas field and adjoining acreage offshore Thailand consisting of Blocks 15, 16 and 17 and block G12/48. This deal is expected to be completed in 1Q 2017, Shell said.

Thai state owned energy company Pttep is the operator of Bongket assets and holds 44.445% while France's Total has a 33.333% stake.

Shell's interest in the assets used to belong to BG, which Shell acquired en bloc in February 2016.

Kufpec said in a separate statement that the acquisition will provide it with 68mn boe in proved and probable reserves and approximately 39,000 boe/d of production from 2016, which will contribute significantly toward its 2020 strategic targets. 

 

Shardul Sharma