PTT Exploration and Production (PTTEP), revealed that PTTEP Offshore Investment and PTTEP International, subsidiaries of the company, have signed share purchase agreements (SPAs) to acquire 100% equity stakes of the subsidiaries of Hess Corporation in Thailand, namely Hess Thailand Holdings II (HTH) and Hess Exploration Thailand (HETCL).
The total consideration of the transaction is approximately USD 1 billion.
The details of HTH and HETCL are as follows:
- own 15% interest in block B12/27 (mainly in Pailin , Morakot and Ubon fields) and block G7/50 of Contract 4 project;
- own 35% interest in Block EU-1 and Block E5 North of Sinphuhorm project.
Contract 4 project is a natural gas field located in the Gulf of Thailand (offshore of Songkhla Province), covering an area of 3,118 square kilometers. The current production is approximately 387 million cubic feet per day of natural gas and 17,528 barrels per day of condensate, with a total proved and probable reserves (2P) of 461 million barrels of oil equivalent (BOE). At present, PTTEP is a partner of the project and holds 45% interest. After the accomplishment, PTTEP interest in Contract 4 project will increase to 60% while Chevron will retain the operatorship of the project.
Located in Udon Thani and Khon Kaen provinces in the northeast of Thailand, Sin Phuhorm project is also a natural gas field with production of 113 million cubic feet per day of gas and 496 barrels per day of condensate. The total proved and probable reserves (2P) are around 45 million barrels of oil equivalent (BOE). PTTEP is currently a partner of the project with 20% interest and after the accomplishment of the transaction the company will increase its interest to 55% and will become the operator of the project.
Press Release, April 23, 2014; Image: Hess