Shell Integrated Gas Thailand and Thai Energy Company, affiliates of Royal Dutch Shell, have agreed to an asset sale of their 22.2% interest in the Bongkot field and adjoining acreage offshore Thailand to PTT Exploration & Production Public Company (PTTEP) and PTTEP International, a wholly owned subsidiary of PTTEP, for a transaction value of $750 million. The transaction is expected to complete in Q2 2018, subject to completion conditions as prescribed in the agreement.
The agreement is for Shell’s stake in blocks 15, 16 and 17 and Block G12/48. Following the completion of this transaction, PTTEP’s stake in Bongkot will increase to 66.7%, with the remaining 33.3% owned by Total. PTTEP is the current operator of Bongkot.
Shell’s decision to divest remains is driven by its strategy to sell non-core assets in order to re-shape Shell into a simpler, more resilient and focused company, according to the company. This sale takes Shell a step closer to its divestment target of $30 billion.