Pertamina and PTTEP Buy Hess' Stake in Two Fields

Source: www.gulfoilandgas.com 12/2/2013, Location: Asia

PTT Exploration and Production Public Company Limited (PTTEP) announces that on November 30, 2013, PTTEP Netherlands Holding Cooperatie U.A. (a subsidiary of PTTEP), and Pertamina Hulu Energy (a subsidiary of Pertamina), have jointly signed Share Purchase Agreements (SPAs), to acquire, on a basis of 50:50, the subsidiaries of Hess Corporation which hold 75% interest in the Pangkah Project and 23% interest in the Natuna Sea A Project, in offshore Indonesia.

The total consideration of transactions is approximately USD 1.3 billion, and PTTEP’s portion is approximately USD 650 million. PTTEP will fund its proportionate share of the transactions through its available cash. Completion of the transactions is subject to customary closing conditions as prescribed in the SPAs with expected closing dates within this year for the Natuna Sea A Project and during the first quarter of 2014 for the Pangkah Project.

The Pangkah Project is an oil field located in the East Java Sea in Indonesia. The current production is approximately 7,000 barrels per day of liquids and 33 million cubic feet per day of gas, with total proved and probable reserves (2P) of 110 million barrels of oil equivalent (BOE). After the completion of the transaction, PTTEP and Pertamina, as the ultimate owners, will jointly operate the Pangkah Project. The other joint venture partner includes SakaEnergi which holds 25% interest.

The Natuna Sea A Project is a gas field located in the West Natuna Sea, near the border between Malaysia and Indonesia. The current production is approximately 220 million cubic feet per day of gas and 2,350 barrels per day of oil, with total proved and probable reserves (2P) of 209 million barrels of oil equivalent (BOE). Partners in the Natuna Sea A Project include Premier Oil (Operator), KUFPEC and Petronas which hold participation interests of 28.67%, 33.33% and 15% respectively.

The acquisition of Pangkah and Natuna Sea A is a strategic fit to PTTEP’s Growth Strategy of adding producing assets that contribute immediate revenue stream, accretion of volume growth and reserves, and enhance our position in South East Asia. PTTEP believes that the combined strength of PTTEP and Pertamina as the national oil & gas companies of Thailand and Indonesia, and with strong operational experiences in the region, will contribute to the continued success of the projects.

The notification of the Capital Market Supervisory Board No. Tor. Jor. 20/2551, regarding the Rules for Significant Transactions Constituting the Acquisition or Disposal of Assets, states that an Information Memorandum must be submitted to Stock Exchange of Thailand and circulated to shareholders if the aggregate value of acquisition and disposal transactions during a consecutive six-month period exceeds the 15% threshold criteria. The transactions contemplated by the signed SPAs do not exceed the threshold.


Norway >>  8/15/2022 - Vår Energi has acquired 30% ownership in production licenses (PL) 820S and PL 820 SB (north of the Balder field in the North Sea) from Lime Petroleum,...
Spain >>  8/12/2022 - F2i, Italy's leading infrastructure fund, and Crédit Agricole Assurances have signed an agreement to acquire from the Villar Mir Group wind farms in o...

Brazil >>  8/11/2022 - Petrobras informs that it has begun the opportunity disclosure stage (teaser), referring to the sale of its mining rights for research and mining of p...
Angola >>  8/10/2022 - Afentra plc, an upstream oil and gas company listed on AIM and focused on acquiring production and development assets in Africa, is pleased to announc...

Denmark >>  8/10/2022 - Vestas continuously looks for partners that can support our strategic focus on our core business and help scale renewables efficiently in the long-ter...
Norway >>  8/10/2022 - • The transaction consideration of US$68 million includes NOK 309 million (~US$33 million) in deferred tax assets which are recoverable for Lime Petro...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.