Shell Pulls Thai Sale to Kufpec

Shell said October 4 it has cancelled its sale of former BG gasfield assets in Thailand to Kuwaiti state-owned Kufpec by mutual agreement.

Instead Shell said it would invest further upstream in Thailand. The Anglo-Dutch supermajor announced January 31 this year it would sell the assets to Kufpec for $900mn.

The interests consist of a 22.222% equity stake in the Bongkot field and adjoining acreage offshore Thailand consisting of blocks 15, 16 and 17 and block G12/48. Shell’s partners in the Bongkot asset are the field's Thai state-owned upstream operator PTTEP with 44.445%, and Total with 33.333%.

Shell said it intends to participate in the forthcoming licensing round for the extension of the Bongkot concession.

Despite the cancelled asset sale, Shell said its divestment programme – targeting sales of $30bn between 2016 and 2018 – is on target, with divestments of more than $25bn completed, announced or in progress.

Mark Smedley