An affiliate of Royal Dutch Shell Plc (NYSE: RDS.A) has divested 22.2222% interest in the Bongkot Field and adjoining acreage offshore Thailand to PTT Exploration & Production Public Co. Ltd. (PTTEP) for a transaction value of $750 million.
The transaction is expected to complete in the second-quarter of 2018, subject to completion conditions as prescribed in the agreement.
The agreement is for Shell’s stake in Blocks 15, 16 and 17 and Block G12/48. Following the completion of this transaction, PTTEP’s stake in Bongkot will increase to 66.6667%, with the remaining 33.3333% owned by Total SA (NYSE: TOT). PTTEP is the current operator of Bongkot.
Shell’s decision to divest remains driven by its strategy to sell non-core assets in order to re-shape Shell into a simpler, more resilient and focused company. This sale takes Shell a step closer to its divestment target of $30 billion.
Shell said the divesture has no impact on its other business interests in Thailand.