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Shell Diverts Thai Gas Assets

- Feb 24, 2018 -

To meet the $ 30 billion divestment target of non-core assets, Shell decided to sell its stake in the Bongkot gas field in Thailand and the nearby offshore block. The agreement covers Shell in blocks 15, 16 and 17 and a 22.2% stake in Block G12 / 48, which Shell will sell to Shell, an oil and gas exploration unit under the pre-tax price of 750 million U.S. dollars, (PTTEP).

The gas field currently produces 860 million cubic feet of natural gas and 26,000 barrels of condensate. The operator is PTTEP. Last October, Shell planned to sell the part of the assets to Kuwait International Petroleum Corp (KUFPEC) for 900 million U.S. dollars, but plans were eventually canceled. Shell said the value of these two transactions is not comparable, will not further explain the commercial terms. The transaction is expected to be completed in the second quarter when the equity interest in PTTEP will increase to 66.7% and the remaining 33.3% will be held by Total.