Thai oil producter PTT Exploration and Production (PTTEP) has acquired 100% equity stakes of the subsidiaries of Hess in Thailand, namely Hess Thailand Holdings II Limited (HTH) and Hess Exploration Thailand Company Limited (HETCL). The assets correspond to a 15% interest in block B12/27 (mainly in Pailin , Morakot and Ubon fields) and block G7/50 of Contract 4 Project and a 35% interest in Block EU-1 and Block E5 North of Sinphuhorm Project. Contract 4 Project is a gas field located in the Gulf of Thailand (offshore of Songkhla Province), with a current production of approximately 387 mcf/d (4 bcm/year) of gas and 17,528 bbl/d of condensate, with a total proved and probable reserves (2P) of 461 mboe. At present, PTTEP is a partner of the project and holds 45% interest (60% when the transaction will be complete). Chevron will retain the operatorship of the project. Located in Udon Thani and Khon Kaen provinces in the northeast of Thailand, Sin Phuhorm Project is also a gas field with production of 113 mcf/d (1.2 bcm/year) of gas and 496 bbl/d of condensate. The total proved and probable reserves (2P) are around 45 mboe. PTTEP is currently a partner of the project with 20% interest (55% and operatorship when the transaction will be completed).
The total consideration of transaction is approximately US$1bn which will be funded by PTTEP’s cash.