Hess sells Thailand assets

PTT Exploration and Production Public Company Ltd. (PTTEP) will acquire 100% equity stakes of Hess Corp in Thailand for US$1 billion.

The details of the transaction are as follows:

• Own 15% interest in block B12/27 (mainly in Pailin , Morakot and Ubon fields) and block G7/50 of Contract 4 Project
• Own 35% interest in Block EU-1 and Block E5 North of Sinphuhorm Project

After the acquisition, PTTEP expects production volume will be increased to about 17,000boe/d.

Contract 4 Project is a natural gas field located in the Gulf of Thailand (offshore of Songkhla Province), covering an area of 3118sq km. The current production is approximately 387MMcu ft/d of natural gas and 17,528 barrels per day of condensate, with a total proved and probable reserves (2P) of 461MMboe.

PTTEP is a partner of the project and holds 45% interest. After the acquisition, PTTEP interest in Contract 4 Project will increase to 60% while Chevron Group will retain the operatorship of the project.

Located in Udon Thani and Khon Kaen, provinces in  northeast Thailand cover an area of 231.6 sq km, Sin Phuhorm Project is also a natural gas field with production of 113MMcf/d of gas and 496bbl/d of condensate. The total proved and probable reserves (2P) are around 45MMboe.

PTTEP is currently a partner of the project with 20% interest and after the accomplishment of the transaction the company will increase its interest to 55% and will become the operator of the project.