PTTEP Acquires Hess' Thailand Assets

PTT Exploration and Production (PTTEP) has acquired 100% equity stakes of the subsidiaries of Hess Corp in Thailand, namely Hess Thailand Holdings II Limited (HTH) and Hess Exploration Thailand Company Limited (HETCL) for $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 Sin Phuhorm Project

After the acquisition, PTTEP production volume will be increased approx. 17,000 barrels of oil equivalent per day.

Contract 4 Project is a natural gas field located in the Gulf of Thailand (offshore of Songkhla Province), covering an area of 3,118 sq kms. The current production is approx. 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 cover an area of 231.6 sq kms, 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.