PTTEP to purchase Partex to expand Middle East presence
PTT Exploration and Production Plc or PTTEP has announced that on Monday its subsidiary PTTEP HK Holding Ltd signed a share purchase agreement (“SPA”) to acquire a 100 per cent stake in Partex Holding BV (Partex) from Calouste Gulbenkian Foundation. The company's CEO and president Phongsthorn Thavisin reported the agreement to the Stock Exchange of Thailand on Monday.
The total consideration of the transaction is approximately US$622 million (Bt19.51 trillion), subject to customary net working capital and closing adjustments.
Partex is a well-established oil and gas company with a long presence in the Middle East of over 80 years. It currently holds seven projects, primarily as a non-operating partner, in five countries with the focus areas in the Sultanate of Oman (Oman) and the United Arab Emirates (UAE).
At the end of 2018, their total estimated proved and probable reserves were approximately 65 million barrels of oil equivalent (BOE), according to working interest. Total net sales volume in 2018 was 16,000 barrels of oil equivalent per day. The key projects are located in the Middle East and comprise:
- The PDO (Block 6) Project, the largest and long-lasting producing oil asset in Oman, located onshore the central part of the country, covering around one-third of Oman’s geographical area and operated by Petroleum Development Oman (PDO). Total oil production volume in 2018 was approximately 610,000 barrels per day (BPD) which accounted for around 70 per cent of Oman’s total oil production. At present, Partex holds a 2 per cent interest;
- The Mukhaizna (Block 53) Project, a large producing oil field located onshore south of Oman, operated by Occidental. Total oil production volume in 2018 was approximately 120,000 BPD which accounted for around 13 per cent of Oman’s total oil production. At present, Partex holds a 1 per cent interest;
- Oman LNG Project (OLNG), the only gas liquefaction complex located south of Oman, consisting of three liquefaction trains with total LNG production capacity of 10.4 million tonnes per annum (MTPA) and operated by Oman LNG LLC. Partex now holds a 2 per cent interest in this project;
- ADNOC Gas Processing Project (AGP), the largest gas processing complex located onshore of Abu Dhabi, UAE, with total processing capacity of 8 billion cubic feet per day (BCFD) and operated by Abu Dhabi National Oil Company (ADNOC). Partex now holds a 2 per cent interest in the gas processing plants that have a combined processing capacity of 1.2 BCFD.
Other projects include the Dunga Project, which is a producing oil field located onshore west of the Republic of Kazakhstan, operated by Total. Total oil production volume in 2018 was approximately15,000 BPD. Partex now holds a 20 per cent interest in this project.
The transaction’s completion is subject to customary conditions precedent as prescribed in the SPA, with an expected closing date in the fourth quarter of 2019. After the completion, PTTEP will assume the same participating interests as Partex.
The acquisition of Partex fits with PTTEP’s Strategic Alliance Strategy, focusing on prolific areas in the Middle East by partnering with world-class operators. This diversified self-funded portfolio will not only provide the immediate revenue stream, production and reserves, but also strengthen PTTEP’s relationship with the local governments, paving a strong path for it to expand its future exploration and production investments in this region, according to the release.