Royal Dutch Shell PLC and Kuwait Foreign Petroleum Exploration Co. (Kufpec) have canceled their deal in which a Kufpec unit was to buy stakes in two Shell subsidiaries that hold interest in Bongkot field offshore Thailand.
Kufpec Thailand Holdings Pte. Ltd. in January agreed to acquire a stake in Shell Integrated Gas Thailand Pte. Ltd. (SIGT) and Thai Energy Co. Ltd. (TEC) for $900 million. SIGT and TEC together hold 22.222% interest in Bongkot field and adjoining acreage off Thailand consisting of Blocks 15, 16, and 17 and Block G12/48.
The deal was announced alongside Shell’s $3.8-billion sale of UK North Sea assets to Chrysaor Holdings Ltd. as part of Shell’s ongoing divestment program after buying BG Group PLC (OGJ Online, Jan. 31, 2017).
Shell, which to date has completed or announced more than $25 billion in divestments, says it remains on track to meet its target of $30 billion of sales between 2016-18.
Shell’s partners in the Bongkot asset are operator PTT Exploration & Production (PTTEP) with 44.445% interest and Total SA with 33.333%.
SIGT and TEC will continue to support PTTEP in the operation and development of Bongkot, Shell says. SIGT also plans to participate in an upcoming licensing round for the extension of the Bongkot concession.
