Shell Sells Stake in Thai Bongkot Gas Field

Shell on January 31 said it is selling stake in its gas assets in Thailand to Kuwait's Kufpec for $900mn.

The deal, like Shell's up-to-$3.8bn sale of North Sea assets announced the same day to Chrysaor, is part of the major's $30bn divestment program.  

Shell reached an agreement whereby Kufpec Thailand Holdings, a subsidiary of Kuwait Foreign Petroleum Exploration Company (Kufpec), will buy Shell Integrated Gas Thailand and Thai Energy Co, both Shell subsidiaries, which together hold a 22.222%  stake in the Bongkot natural gas field and adjoining acreage offshore Thailand consisting of Blocks 15, 16 and 17 and block G12/48. This deal is expected to be completed in 1Q 2017, Shell said.

Thai state owned energy company Pttep is the operator of Bongket assets and holds 44.445% while France's Total has a 33.333% stake.

Shell's interest in the assets used to belong to BG, which Shell acquired en bloc in February 2016.

Kufpec said in a separate statement that the acquisition will provide it with 68mn boe in proved and probable reserves and approximately 39,000 boe/d of production from 2016, which will contribute significantly toward its 2020 strategic targets. 

Shardul Sharma