Shell’s affiliates Shell Integrated Gas Thailand and Thai Energy Company have closed the sale of their 22.2222% interest in the Bongkot field and adjoining acreage offshore Thailand in a deal valued at $750m.
The sale, which comprises Shell’s stake in Blocks 15, 16 and 17 and Block G12/48, was made to PTT Exploration & Production Public Company (PTTEP) and PTTEP International, a wholly owned subsidiary of PTTEP.
Announced on 31 January this year, the sale completion follows receipt of the necessary regulatory approvals.
PTTEP operates Bongkot, and following the completion of the deal, the company’s stake in the field increased to 66.6667%. Total owns the remaining 33.3333% stake.
Shell noted that the completion of the deal shows the clear momentum behind a $30bn divestment programme.
The company further added that the announcement has no impact on its other business interests in Thailand.
In a separate development, Shell’s affiliate A/S Norske Shell has signed an agreement to divest its full 44.56% stake in Draugen and 12% stake in Gjøa offshore assets in Norway to Okea for Nkr4.52bn ($554m).
Shell will retain an 80% liability of the $120m decommissioning costs associated with these assets, while Okea will assume the remaining 20% liability.
Last year, Shell’s production share from these assets was nearly 25,000boed, which is nearly 14% of its Norwegian production in 2017.
A/S Norske Shell managing director Rich Denny said: “Draugen has been a defining asset for Shell in Norway, and we are confident it will prove to be similarly important to OKEA as a springboard in further developing their operating capabilities on the Norwegian Continental Shelf.”
The divestment is expected to complete in the fourth quarter of this year, subject to regulatory approvals.
Once completed, Okea will assume operatorship of the Draugen resource. All onshore and offshore staff associated with Draugen will also be transferred to the company.