Shell To Sell Thai Field Stake to PTTEP

Shell has agreed to sell its 22.2222% interest in the Bongkot gas field and adjoining acreage offshore Thailand to PTT Exploration & Production Public Company (PTTEP) for $750mn, it said January 31.

The transaction is expected to complete in 2Q 2018, subject to completion conditions as prescribed in the agreement.

The agreement is for Shell's stake in Blocks 15, 16 and 17 and Block G12/48. Following the completion of this transaction, PTTEP's stake in Bongkot will increase to 66.6667%, with the remaining 33.3333% owned by Total. PTTEP is the current operator of Bongkot. 

Shell originally said January 31 2017 it would sell the Bongkot stake to Kuwaiti state-owned Kufpec for $900mn but in October it said that sale was cancelled by mutual agreement.

“Shell's decision to divest remains driven by our strategy to sell non-core assets in order to re-shape Shell into a simpler, more resilient and focused company. This sale takes Shell a step closer to its divestment target of $30bn,” said Shell.