Shell sells Thai offshore acreage for $900 million

Oil giant Shell has reached an agreement with Kuwait’s KUFPEC for the sale of a 22.222 percent equity stake in the Bongkot field and adjoining acreage offshore Thailand. 

Apart from the stake in the Bongkot field, the sale worth $900 million includes Shell’s equity stake held in Blocks 15, 16 and 17 and Block G12/48.

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

The company added that the transaction is a part of Shell’s global $30 billion divestment program and is consistent with the company’s strategy to high-grade and simplify its portfolio following the acquisition of BG.

This transaction is expected to be completed in the first quarter of 2017 and will have no impact on Shell’s other business interests in Thailand.

The Bongkot field is located in the Gulf of Thailand some 600 kilometers south of Bangkok. It consists of two parts, Bongkot North and Bongkot South. The northern development consists of a central complex for gas gathering, processing, export and accommodation, a condensate floating storage and offloading vessel, and 25 remote wellhead platforms. The field can produce 385 million cubic feet of natural gas and 18,000 barrels of condensate daily.