Through the acquisition, PTTEP will gain an additional 16,000 barrels per day (BPD) of oil production along with about 65 million BOE in proved and probable reserves
Image: Partex to be acquired by PTTEP. Photo: courtesy of Monika Wrangel/Pixabay.
Thai state-owned energy company PTT Exploration and Production (PTTEP) has agreed to acquire Portuguese oil and gas firm Partex from Calouste Gulbenkian Foundation for about $622m (£496.01m).
The acquisition enables the Thai company to take part in certain Omani onshore producing assets besides oil and gas projects across four other countries.
PTTEP said that the acquisition of Partex, which is expected to be completed by the year end, will give scope for possible investments in the future in the Middle East.
Currently, the Portuguese oil and gas firm holds interests in seven upstream and midstream projects in Oman, the UAE, Kazakhstan, Brazil and Angola.
The acquisition will give PTTEP an additional petroleum sales volume of 16,000 barrels per day (BPD) along with about 65 million barrels of oil equivalent (BOE) in proved and probable reserves.
Oil and gas assets of Partex across the world
In Oman, Partex holds 2% stake in the PDO (Block 6) Project, which had produced nearly 610,000BPD of oil in 2018.
The company also holds a stake of 1% in the Mukhaizna (Block 53) Project, a large producing oil field operated by Occidental Petroleum. In 2018, the total oil produced from the onshore Omani field was around 610,000bpd.
In the Omani midstream sector, Partex has a stake of 2% in the Oman LNG Project (OLNG) which has an LNG production capacity of 10.4 million tons per annum (MTPA) through three liquefaction trains.
In the UAE, the Portuguese company holds a stake of 2% in the ADNOC Gas Processing Project (AGP) in Abu Dhabi, which has a total capacity of eight billion cubic feet per day (BCFD).
PTTEP president and CEO Phongsthorn Thavisin said: “Partex has invested in Oman’s largest onshore oil field for more than 80 years. This acquisition is not only a gateway for PTTEP to invest in one of the strategic areas of the Middle East’s oil and gas business, but also allows us to create new business partnership with both national oil companies of Oman and UAE, and world-class oil and gas players as we follow our Expand & Execute strategy.”
In Kazakhstan, the Portuguese company holds 20% stake in the producing Dunga oil field which has a production rate of 15,000bpd.
In Brazil, Partex with 50% stake is the operator of the producing Potiguar oil field. The company’s other asset is in Angola, where it has 2.5% stake in Block 17/06 Project, which is a pre-development asset operated by Total.
Earlier this year, PTTEP signed a deal through its subsidiary PTTEP HK Offshore, to acquire the Malaysian oil and gas assets of Murphy Oil for $2.127bn (£1.7bn).