PTTEP increase shares in APICO LLC, drives forward Sinphuhorm Project development
PTTEP HK Holding Limited, a subsidiary of PTT Exploration and Production Public Company Limited (PTTEP), has signed a share purchase agreement to acquire a 39-per-cent stake in APICO LLC from Coastal Energy Company (Khorat) Limited, with the total transaction valued a approximately US$74 million (Bt2.27 billion). The deal will increase PTTEP’s share in APICO LLC to 72.8 per cent.
APICO LLC currently holds a 35 per cent participating interest in the Sinphuhorm Project, of which PTTEP is the operator with a 55 per cent participating interest. ExxonMobil Exploration and Production Khorat Inc holds the remaining 10 per cent participating interest.
Furthermore, APICO LLC also holds a 100 per cent participating interest in Block L15/43 and Block L27/43, which both are located in the northeastern region of Thailand.
The transaction is expected to be completed within the third quarter of 2019. After the completion, PTTEP’s stake in the Sinphuhorm Project will, directly and indirectly, increase to a total of 80.48 per cent.
Phongsthorn Thavisin, the PTTEP president and CEO, said “this acquisition of additional interest in APICO underlines PTTEP’s growth strategy in expanding investment in Thailand. The deal will generate return on investment to PTTEP while also driving further development of the Sinphuhorm Project to support electricity generation in northeast of Thailand”.
This is an acquisition of additional stakes in APICO after PTTEP had completed APICO’s share purchase transaction from Tatex Thailand in June 2019.
The Sinphuhorm Project covers Blocks EU1 and E5N in Udon Thani and Khon Kaen provinces. In the first half of 2019, the project’s average sales volume of natural gas was approximately 88 million cubic feet per day (14,487 barrels of oil equivalent per day) and the average condensate sales volume was 289 barrels per day.
Natural gas from the project is the main supply for the Nam Phong Power Plant in Khon Kaen, which has been included in the latest national Power Development Plan (PDP) 2018-2037 to support economic and social development of Thailand. The Sinphuhorm Project’s concessions were granted a 10-year extension by the cabinet in May 2019.
