Shell cancels $900m deal to sell Thai field stakes to Kuwait's KUFPEC
Shell’s subsidiary BG Asia Pacific Holdings and Kuwait Foreign Petroleum Exploration Company (KUFPEC) have agreed to cancel the $900m agreement to sell Shell Integrated Gas Thailand (SIGT) and Thai Energy (TEC).
Originally announced in January, the sale was due to be concluded in the first quarter of this year.
At the time of the announcement, Shell noted that the sale has no impact on its other business interests in Thailand.
Reuters quoted a Shell’s spokesperson saying: “Although Shell and the Thai Government have worked together closely and collaboratively on the matter, the different interpretations of the treatment of share sale transactions were not resolved within Shell and KUFPEC’s agreed timeframe."
Together, SIGT and TEC hold an equity stake of 22.222% in the Bongkot field and adjoining acreage offshore Thailand comprising Blocks 15, 16 and 17 and block G12/48.
Bongkot is operated by PTT Exploration & Production (PTTEP) with 44.445% equity, while the remaining 33.333% equity is held by Total.
As the deal has now been cancelled, the two companies will continue to work with PTTEP for further development and operations of Bongkot field.
SIGT also plans to participate in the upcoming licensing round that involves extending the concession.
To date, Shell has more than $25bn of divestments that have been completed, announced or in progress.
The company aims to complete $30bn of divestments between 2016 and 2018.