Oil giant Royal Dutch Shell has entered into an agreement to sell its stake in Thailand's Bongkot gas field to Kufpec Thailand Holdings for $900m.
Kufpec Thailand Holdings, a subsidiary of Kuwait Foreign Petroleum Exploration Company (KUFPEC), will acquire the stake from Shell’s subsidiaries Shell Integrated Gas Thailand and Thai Energy.
The subsidiaries together hold a 22.2% equity stake 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 gas field include the operator of the field PTT Exploration & Production with 44.4% stake and Total with 33.3% equity.
The transaction is expected to be completed in the first quarter of 2017.
Shell said in a statement: “This transaction shows the clear momentum behind Shell’s global, value-driven $30bn divestment programme, and is consistent with the company’s strategy to high-grade and simplify its portfolio following the acquisition of BG.”
The company said that the sale has no impact on its other business interests in Thailand.
Separately, Shell has entered into an agreement to sell a package of UK North Sea oil and gas assets to UK-based Chrysaor for $3.8bn.
The package of assets consists of Shell’s interests in Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine, plus a 10% stake in Schiehallion.
Subject to regulatory and partner consents, the deal is expected to complete in the second half of 2017.
In December last year, Japan's petroleum company Idemitsu Kosan completed acquisition of 31.2% stake in refiner Showa Shell Sekiyu from Shell for JPY159bn ($1.4bn).
Image:Shell subsidiaries together hold a 22.2% equity stake in the Bongkot field. Photo: courtesy of num_skyman/FreeDigitalPhotos.net.