Thailand-based PTT Exploration and Production Public Company (PTTEP) has entered into an agreement to sell its 100% stake in the Montara field, as part of its portfolio rationalization strategy.
PTTEP chief executive officer Somporn Vongvuthipornchai said that PTTEP Australasia (Ashmore Cartier), PTTEP’s subsidiary, has signed an agreement for the sale of Montara Asset to sell a 100% stake in the Montara field to Jadestone Energy (Eagle) for $195m.
The sale is expected to align with the company’s business strategy aimed to focus on the operations and projects in the strategic locations.
Located offshore Australia, the average production volume from the Montara field in the first half of this year is about 7,694 barrels per day.
Somporn said: “The sale of the Montara field is in alignment with our strategic direction in increasing investments in our focused areas in Southeast Asia and the Middle East, where we have experience and expertise.
“ These areas have high petroleum potential, low cost structure as well as low risks that will help us add more petroleum reserves and enhance long-term growth for the company.”
However, the acquisition price will be adjusted for working capital from the operations until the date of transaction completion expected this year.
In addition to the purchase value, PTTEP will receive additional contingent consideration of up to $160m depending on certain production, oil price and future development milestones being achieved.
The transaction is the Australian regulatory approvals from the National Offshore Petroleum Titles Administrator (NOPTA) and the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA).
In June, PTTEP completed the acquisition of 22.2222% stake in the Bongkot field from Shell affiliates, taking its overall stake in the field to 66.6667%.
PTTEP said that the acquisition represents a strategic fit its growth strategy in expanding its investments through merger and acquisitions (M&A) to add petroleum reserves in both near and longer terms.