Hess has agreed to sell its Thailand assets to PTTEP for $1 billion. Under the agreement, PTTEP will acquire a 15% stake in the Contract 4 gas field off Songkhla Province and a 35% stake in the Sinphuhorm gas field located in the Udon Thani and Khon Kaen provinces.
Contract 4 Gas field
· Covers an area of 3,118 sq km
· Production approximately 387 MMcf/d of natural gas and 17.5 Mbbl/d of condensate
· 2P reserves of 461 MMBOE
· Post-transaction ownership: Chevron (40%, operator) and PTTEP (60%)
Sinphuhorm Gas field
· Covers an area of 231.6 sq km
· Production of 113 MMcf/d of gas and 496 bbl/d of condensate
· 2P reserves are around 45 MMBOE
· Post-transaction ownership: PTTEP (55%, operator), Apico (35%) and ExxonMobil (10%)
Upon the completion of the transaction, PTTEP's production volume will rise by approximately 17 MBOE/d.
PTTEP President and CEO Tevin Vongvanich said, "The acquisition of Hess Corporation's interests in Contract 4 and Sinphuhorm Projects is a strategic fit to PTTEP growth strategy by adding producing assets, accretion of volume growth and reserves, and strengthening our investment in Thailand".
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