Thailand’s PTTEP buys Hess assets for $1b

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oil rigThailand’s PTT Exploration and Production Plc’s subsidiaries PTTEP Offshore Investment Company Ltd. and PTTEP International Ltd. have signed a share purchase agreement to acquire 100 per cent equity stakes of two subsidiaries of US-based oil company Hess Corp., namely Hess Thailand Holdings II Ltd. (HTH) and Hess Exploration Thailand Co. Ltd. (HETCL), for around $1 billion, CEO Tevin Vongvanich said in an announcement on the Stock Exchange of Thailand on April 23.

HTH has 100 per cent equity stake in Hess (Thailand) Ltd., which owns 15 interest in offshore Block B12/27 of Contract 4 Project – comprising mainly petroleum fields including Pailin, Morakot and Ubon – and 35 per cent interest in onshore Block EU-1 and Block E5 North of the Sinphuhorm Project. HETCL owns 15 per cent interest in offshore Block G7/50 of Contract 4 Project.

PTTEP, which will fund the acquisition with the firm’s available cash, revealed that the transaction of HTH already closed April 22, while completion of the HETCL transaction is expected in May.

“The acquisition of Hess Corporation’s interests in the Contract 4 Project and the Sinphuhorm Project is a strategic fit to PTTEP’s growth strategy of adding producing assets that contribute immediate revenue stream, accretion of volume growth and reserves, and enhance our position in Thailand,” Tevin said.

Contract 4 Project is a natural gas field located in the Gulf of Thailand (offshore Songkhla Province), covering an area of 3,118 square kilometers, with total proved and probable reserves of 461 million barrels of oil equivalent. Current production is around 387 million cubic feet per day of natural gas and 17,528 barrels per day of condensate.

PTTEP currently holds 45 per cent interest in the Contract 4 Project and its interest will rise to 60 per cent after the completion of the transaction. Chevron Corp., which has 35 per cent interest in the project, will remain operator.

Sinphuhorm Project is a natural gas field located in Udon Thani and Khon Kaen provinces in northeastern Thailand, covering an area of 231.6 square kilometers. The project now produces approximately 113 million cubic feet per day of natural gas and 496 barrels per day of condensate.

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Reading Time: 2 minutes

Thailand’s PTT Exploration and Production Plc’s subsidiaries PTTEP Offshore Investment Company Ltd. and PTTEP International Ltd. have signed a share purchase agreement to acquire 100 per cent equity stakes of two subsidiaries of US-based oil company Hess Corp., namely Hess Thailand Holdings II Ltd. (HTH) and Hess Exploration Thailand Co. Ltd. (HETCL), for around $1 billion, CEO Tevin Vongvanich said in an announcement on the Stock Exchange of Thailand on April 23.

Reading Time: 2 minutes

oil rigThailand’s PTT Exploration and Production Plc’s subsidiaries PTTEP Offshore Investment Company Ltd. and PTTEP International Ltd. have signed a share purchase agreement to acquire 100 per cent equity stakes of two subsidiaries of US-based oil company Hess Corp., namely Hess Thailand Holdings II Ltd. (HTH) and Hess Exploration Thailand Co. Ltd. (HETCL), for around $1 billion, CEO Tevin Vongvanich said in an announcement on the Stock Exchange of Thailand on April 23.

HTH has 100 per cent equity stake in Hess (Thailand) Ltd., which owns 15 interest in offshore Block B12/27 of Contract 4 Project – comprising mainly petroleum fields including Pailin, Morakot and Ubon – and 35 per cent interest in onshore Block EU-1 and Block E5 North of the Sinphuhorm Project. HETCL owns 15 per cent interest in offshore Block G7/50 of Contract 4 Project.

PTTEP, which will fund the acquisition with the firm’s available cash, revealed that the transaction of HTH already closed April 22, while completion of the HETCL transaction is expected in May.

“The acquisition of Hess Corporation’s interests in the Contract 4 Project and the Sinphuhorm Project is a strategic fit to PTTEP’s growth strategy of adding producing assets that contribute immediate revenue stream, accretion of volume growth and reserves, and enhance our position in Thailand,” Tevin said.

Contract 4 Project is a natural gas field located in the Gulf of Thailand (offshore Songkhla Province), covering an area of 3,118 square kilometers, with total proved and probable reserves of 461 million barrels of oil equivalent. Current production is around 387 million cubic feet per day of natural gas and 17,528 barrels per day of condensate.

PTTEP currently holds 45 per cent interest in the Contract 4 Project and its interest will rise to 60 per cent after the completion of the transaction. Chevron Corp., which has 35 per cent interest in the project, will remain operator.

Sinphuhorm Project is a natural gas field located in Udon Thani and Khon Kaen provinces in northeastern Thailand, covering an area of 231.6 square kilometers. The project now produces approximately 113 million cubic feet per day of natural gas and 496 barrels per day of condensate.

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