PTTEP increases investment in gas fields

PTTEP announced on Wednesday, that PTTEP and its subsidiary PTTEP International have signed an agreement for the assignment and transfer of the 22.2222 per cent stake in the Bongkot Project from Shell subsidiaries, namely Shell Integrated Gas Thailand and Thai Energy Co, with the transaction value before tax of about US$750 million (Bt23.5 billion). 
After the completion of the transaction, PTTEP’s stake in the Bongkot Project will increase to 66.6667 per cent. 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 Southeast 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 about 35,000 barrels of oil equivalent (BOED) per day.
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 per cent), a major French oil and gas company.
Current sales volume is approximately 860 million cubic feet per day of natural gas and 26,000 barrels per day of condensate.