Royal Dutch Shell sells its stake in Thailand’s Bongkot gas field

Bongkot gas fieldThe international oil giant Royal Dutch Shell sells its stake in Thailand’s Bongkot gas field to Kuwait Petroleum’s division Kufpec. The transaction is estimated to 900 million USD and includes 22.22% equity stake in the field and adjoining acreage offshore Thailand, consisting of Blocks 15, 16 and 17 and Block G12/48. The deal is expected to be finalized in first quarter of 2017, as both sides agreed on the sale. The Bongot gas field became part of the assets of Shell, when the company acquired BG Group for 70 billion USD in 2015. The other shareholders in the Bongkot gas field are the French Total 33.3%) and Thailand’s PTT Exploration & Production (44.4%), which is also the operator.

The assets sale is the latest move of the Anglo-Dutch company to reduce debt after buying smaller rival BG Group for 70 billion USD, bringing its total divestments since April 2015 to 8.7 billion USD.

“This transaction shows the clear momentum behind Shell’s global, value-driven 30 billion USD divestment programme, driven by value and is consistent with the company’s strategy to leave assets with high quality and simplify its portfolio following the acquisition of BG”, said Royal Dutch Shell in statement.

Furthermore, Shell is also nearing the sale of a large part of its North Sea oil and gas assets to private equity-backed Chrysaor for 3 billion USD.