Shell cancels $900 million Thailand gas sale

The Hague-based LNG giant Shell has cancelled the $900 million sale of its stake in a Thai gas field to Kuwait’s state-owned KUFPEC.

Shell said in January the company entered into a deal for the sale of subsidiary companies Shell Integrated Gas Thailand and Thai Energy Co, which together hold a 22.222% equity stake held in the Bongkot field, and adjoining acreage offshore Thailand consisting of Blocks 15, 16 and 17 and block G12/48.

Shell’s partners in the Bongkot asset are operator of the field, PTT Exploration & Production (PTTEP), with 44.445% equity, and Total with 33.333% equity.

“SIGT and TEC will continue to support PTTEP in both the safe and efficient operation and further development of Bongkot. SIGT also intends to participate in the forthcoming licensing round for the extension of the Bongkot concession, ” Shell said in a statement.

The sale was part of efforts by Shell to reduce debt after buying BG Group for $70 billion.

Shell added that, to date, the company had more than $25 billion in completed, announced or in progress divestments, and it was on track to meet its target of $30 billion of divestments between 2016 and 2018.