PTTEP, Pertamina Buy Hess’ Indonesian Assets for $1.3B

  • Business & Finance

 Thai oil and gas company PTTEP has informed it has signed Share Purchase Agreements with respect to the acquisition of Hess Corporation’s interests in Indonesian oil & gas producing assets.

Hess Indonesia


On November 30, 2013, PTTEP Netherlands Holding Coöperatie U.A. (a subsidiary of PTTEP), and Pertamina Hulu Energy (a subsidiary of Pertamina), jointly signed Share Purchase Agreements (SPAs), to acquire, on a basis of 50:50, the subsidiaries of Hess Corporation which hold 75% interest in the Pangkah Project and 23% interest in the Natuna Sea A Project, offshore Indonesia.

The total consideration of transactions is approximately USD 1.3 billion, and PTTEP’s portion is approximately USD 650 million. PTTEP will fund its proportionate share of the transactions through its available cash. Completion of the transactions is subject to customary closing conditions as prescribed in the SPAs with expected closing dates within this year for the Natuna Sea A Project and during the first quarter of 2014 for the Pangkah Project.

The Pangkah Project is an oil field located in the East Java Sea in Indonesia. The current production is approximately 7,000 barrels per day of liquids and 33 million cubic feet per day of gas, with total proved and probable reserves (2P) of 110 million barrels of oil equivalent (BOE). After the completion of the transaction, PTTEP and Pertamina, as the ultimate owners, will jointly operate the Pangkah Project. The other joint venture partner includes SakaEnergi which holds 25% interest.

The Natuna Sea A Project is a gas field located in the West Natuna Sea, near the border between Malaysia and Indonesia. The current production is approximately 220 million cubic feet per day of gas and 2,350 barrels per day of oil, with total proved and probable reserves (2P) of 209 million barrels of oil equivalent (BOE). Partners in the Natuna Sea A Project include Premier Oil (Operator), KUFPEC and Petronas which hold participation interests of 28.67%, 33.33% and 15% respectively.

The acquisition of Pangkah and Natuna Sea A 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 South East Asia. PTTEP believes that the combined strength of PTTEP and Pertamina as the national oil & gas companies of Thailand and Indonesia, and with strong operational experiences in the region, will contribute to the continued success of the projects.


Press Release, December 02, 2013


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